Due diligence performed by the acquiree

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March 5, 2016 at 12:07 pm #303589
Robert
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John,
Why is it necessary for the company being acquired to perform due diligence on the company acquiring them?

Many thanks
Robert
March 5, 2016 at 3:06 pm #303616
John Moffat
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It is not a necessity. However they might do it to check that the acquirer has the necessary finance in place if they are buying for cash. Alternatively, if it more of a merger requiring integration then they may want to do due diligence.
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