M&A Due Diligence Checklist

Critical in every M&A transaction is a comprehensive due diligence investigation.  An acquirer/buyer should always have a complete understanding of the all the intricacies of the target company, from operations to financial to legal.  Failure to conduct due diligence may lead to major unforeseen issues such as unknown liabilities or overpayment.  A buyer should never rely solely on information that the target company has provided but should take the necessary steps to validate.  It is important to have a M&A due diligence checklist to ensure that all major areas have been investigated and considered when making the decision to buy or not to buy a company. Read More…

Due Diligence and Registered Representatives

The topic of due diligence is widely discussed regarding the financial services industry.  Due diligence of products.  Due diligence of potential employees.  Due diligence of client suitability.  But, what exactly does it mean when applied to financial services and what does it mean to representatives?

“Due diligence” is commonly defined as an investigation of a business or person prior to signing a contract, or an act with a certain standard of care.  Due diligence, in the financial services world, is commonly seen as the process of investigation and evaluation, into the details of a potential investment, such as an examination of operations and management and the verification of material facts.

The term “due diligence” first came into common use as a result of the Securities Act of 1933. The Act included a defense noted in Section 11, referred to as the “Due Diligence” defense, which Read More…