Due Diligence Requirements In Nigeria

It is important for investors to conduct due diligence on a target Nigerian company before investing in it whether by means of restructuring, mergers, acquisitions or takeovers. This is because the real state of the company may not be stated in the books of the target company or known to the investor until it takes full control of the company. The main reasons why due diligence is very important is to;

1. minimise the potential loss to the Investors' creditors and ensure fiduciary duties are performed diligently;
2. monitor the target company's financial position and ascertain its debts;
3. take specialist advice and, if there is a prospect of insolvency, refraining from incurring new liabilities;