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Article: Vendor Due Diligence Shifts The Burden.
- Article from:
- Mondaq Business Briefing
- Article date:
- October 29, 2006
- Author:
CopyrightCOPYRIGHT 2006 Mondaq Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Key message
Vendor due diligence is increasing in popularity in Australia after many successes in the UK, Europe and the USA, smoothing the pathways of an M&A transaction with multiple bidders while shifting the burden of due diligence to the selling party. This Legal Update explains what a vendor due diligence is all about and how the advantages outweigh the disadvantages for some transactions.
Due diligence in an M&A transaction has ordinarily been undertaken by the purchaser on the caveat emptor principle, but recent trends both here an overseas has seen that burden shifting to the vendor.
Vendor due diligence is a development which has ...