Pre-Sale Due Diligence in M&A transactions

In this video, as part of M&A Deconstructed series III, M&A experts, Justin Levine, managing director of The NonExec and Shaun Guppy discuss the importance of pre-sale due diligence and relevance for a seller. Moreover why, when not an actual requirement, the investment of time and money is recommended before going to market, as well as how conducting thorough pre-sale due diligence upfront to identify and address any potential issues can actually save time, money, and prevent deal-breaking issues from arising during the sale process. 

Shaun and Justin identify some common issues that can arise including; problems with the share register, ownership of intellectual property and compliance with data protection regulations. 

Actual due diligence can be a lengthy process and it involves three teams; legal, financial and tax, who examine the company in minute detail. Sellers often underestimate the time and effort required for due diligence but also how much more difficult and time consuming it is to rectify any issues mid-deal plus the potential exposure to an aborted sale, should skeleton(s) be found in the process, causing a buyer to pull out.

Take a look at this in-depth discussion in the video.

Connect with the M&A experts

Justin Levine, Managing Director, The NonExec Limited M&A Boutique 
Justin leads a boutique exit advisory firm specialising in manufacturing, technology, IT, digital, healthcare, wholesale and distribution markets. With the support of a 20-strong virtual team of analysts and researchers, he helps private business owners with growth and exit strategies. Connect with Justin >

Shaun Guppy, Partner and Corporate Solicitor, Steele Raymond
Shaun acts for a wide range of business clients across various sectors, advising on complex corporate transactions including company sales, purchases and mergers. Connect with Shaun >

Make an Enquiry

If you have any questions regarding your business, a business exit, a merger or any other corporate legal query, please contact Shaun Guppy on 01202 204527 or email [email protected]