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| 7 October 2017

Due Diligence

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A process where a buyer or investor examines an asset, company, or business. A due diligence exercise may include reviewing relevant documents and financial statements, inspection of premises and operations and interviews with key personnel including the management team, accountants, legal counsel, customers and suppliers. A buyer or investor will usually engage lawyers and accountants to assist with the review in their respective areas of expertise. For example, in a sale scenario, a buyer will examine the company’s records to (i) confirm that those records support the valuation; (ii) find any matters which it can use as a basis on which to renegotiate the price; or (iii) request any further information it needs.