Without due diligence, any money on the table would inevitably go to the seller. Buyer’s always have a duty to shareholders to ensure no rock is left unearthed when it comes time to prepare the business for divestment and sale. In software mergers it is of particular importance as many key considerations with the software itself can be swept under the rug. Sifting through and picking out current and potential issues is always key in balancing a strategic acquisition in a particular niche endeavor. Here are a few considerations.
Due diligence on company employees:
Financial due diligence:
The more knowledge the deal team has on the target company’s industry, the better equipped deal makers will be when it comes time to enter negotiation proceedings. This list is just preliminary, but is helpful in brainstorming due diligence questions which may arise as you attempt to buy or sell a business.