Due diligence may expose old liabilities.

(From Business Day (South Africa))

Byline: Adam Gunn

Due diligence may expose old liabilities IT IS standard business practice that when a transaction is taking place which will result in the disposal and subsequent acquisition of a major interest in a company, a due-diligence investigation takes place.

Usually, the due diligence will be undertaken by a team skilled in different legal, financial and technical areas. The exact skills that are required depend on the nature of the operations of the business. The purpose of a due-diligence exercise is to broadly review the target company and to determine whether the business is in substantial compliance …