| gen. |
title search (An investigation of documents in the public record office todetermine the state of a title, including all liens, encumbrances, mortgages,etc., affecting the property; the means by which a chain of title is ascertained. Babylon Law Dict Alexander Demidov); due diligence (1) The purpose of due diligence is to uncover and understand all liabilities of the business and check what the owners are saying is true, eg, nature and condition of the assets, no major disputes. Information may be made available through an information memorandum, seller's response to the buyer's due diligence questionnaire, a data room and/or accountants and other specialist reports on the company. 2) The process by which a buyer of or an investor in a company or business investigates the records of the target to support its value and find out whether there are matters on which it requires further information or which it should use as a platform to renegotiate the price. In the acquisition of a business, reports from accountants and legal advisers are usually prepared to record the findings of the legal and financial due diligence process. The due diligence process is supported by warranties (warranty) and indemnities (indemnity) in the acquisition agreement. PLG Alexander Demidov) |
