Should A Seller Care About Due Diligence?

Yes. And here are a few MORE reasons why.

In our recent post we considered, to what extent, the seller in the context of an M&A transaction should care about legal due diligence, and suggested that there are a number of important reasons why a seller should concern itself with legal due diligence in the face of an acquisition.

In addition to our thoughts on the utility of seller due diligence for the purpose of uncovering potential barriers to the sale of the target business, the seller will also want to ensure that it can actually make the representations and warranties that it has been asked to make in the purchase agreement. At the same time, it will want to instil confidence in the buyer that such representations and warranties are accurate and complete.