Mergers & Acquisitions...
Merfeld & Schine, Inc.
Selling Your Company, Step 13:
This is the verification phase of the process, and probably the least fun part of selling your business. While at the beginning, we advise the buyer to assume that what he is being told is true, due diligence is the buyer’s opportunity to verify that the information provided was indeed true and accurate.
Often buyers will bring their accountant in to examine the financial records of the company as part of the due diligence process. The buyer’s lawyer may want to review certain documents such as incorporation papers, corporate minutes, leases, and contracts the business may have in force.
If the buyer or his accountant or lawyer, or other advisor finds material misrepresentations or inaccuracies during due diligence, he has the right to cancel or renegotiate the deal without penalty. However the buyer must notify us within a stipulated time period (typically 60 days) that he has discovered problems in due diligence, and he wishes to cancel the acquisition deal.
While due diligence is not fun, we almost never have a deal collapse at this phase. We are pretty good at spotting serious problems early on and will warn the seller of those problems. We don't represent companies where we believe there is misrepresentation involved.
Next step: Purchase & Sale Agreement
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We focus on (but do not entirely limit to) companies with sales in the $1MM to $20MM range located in the New England States: MA, CT, NH, RI, VT, ME.
If any of our M&A services fit your needs, please feel free to contact us for a free consultation without obligations or sales pressure. Fill out this simple form or call us (401-751-3320)
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