... new business relationship may not be enough. Many companies now regularly retain specialists to supplement that process with "business" or "investigative" due diligence. (Economist Intelligence Unit) Investigative due diligence is meant to answer questions that official records and financial accounts cannot. For example what about the people managing the company? Do they engage in risky or illegal practices? The business of investigative due diligence is more mundane that might be imagined, an exercise in thoroughness and common sense. (Economist Intelligence Unit) A prospective buyer or investor investigates and gathers all possible information about a seller company and its business/assets. The purpose is to decide whether to proceed with the transaction on initially discusses terms, establish areas of risk that need particular attention and if justified withdraw from the proposed investment, Representations s and warranties by the seller are no substitute for the due diligence process. (www.globallawreview.com) It is imperative that an ...

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