Any acquisition is risky. We know, then, that a struggling company carries extra uncertainty. When clients call me because they are looking to buy a distressed company, we talk about the unknowns and the challenges of due diligence.
We review and resolve five areas of concern before taking on the risks of a company in trouble.
The acquisition of a distressed company comes with many risks. The unknowns can be costly. But acquiring a struggling company can open doors that otherwise would remain closed. The purchase price can be especially attractive.
So be careful and perform thorough due diligence.
Each case is unique. Past results do not guarantee future outcomes. This posting is intended to be a tool to familiarize readers with some of the issues discussed herein. This is not meant to be a comprehensive discussion and additional details should be discussed with your attorneys, accountants, consultants, bankers and other business planners who can provide advice for your circumstances. Each case is unique. Past results do not guarantee future outcomes. This article should not be treated as legal advice to any person or entity. FreeImages.com C. We.
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