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Kim Smith.
Kim Smith.-
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Noah098
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ma’am this question is from a general PoV of just understanding things…
I have some qualms wrt ethics surrounding information collated during due diligence process by audit firm.
For eg. a co. is not interested in acquiring its rival, but wants to know what the rival is upto, their future projects and stuff, then it can easily pay the fees to audit firm and seek the insider information through due diligence ( management accounts, forecasts and budgets, package of KMP etc.)!
Which seems possible prima facie, but grossly unethical ofcourse!
what’s the way around for targets of such malevolent ploys?
Kim Smith
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You mustn’t assume that the business world is inherently immoral/unethical. If any co were to do this, they could do it only once because thereafter they would be known to be dishonest(!)
In a DD scenario there is “give and take” – it’s not all one sided – the target company has to be interested in being acquired and will do it’s own research into the potential acquirer – and there will be “memorandum of understanding” or other agreement between the parties that will bind them regarding confidentiality.
Noah098
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