Basically, the place where documents are made available by the seller to the auditor for inspection is the so-called data room. There are two ways to share information in order to carry out due diligence...
Basically, the place where documents are made available by the seller to the auditor for inspection is the so-called data room. There are two ways to share information in order to carry out due diligence...
It is widely accepted that the first stage of the due diligence process is the signing by the parties of a non-disclosure agreement (NDA).
In connection with the said diverse economic realities where due diligence may take place, as well as due to the uneven demand of stakeholders, the analysis may involve different aspects of activity of a potential investment.
The condition for making right investment decisions is possessing reliable and accurate information. In sale and purchase transactions there is a significant asymmetry of information, and the seller always has a significant information advantage over the buyer. In order to minimize the risk related to their potential purchase, investors have developed a series of measures to protect their interests. Due diligence is one of the tools that should be used before making the final investment decision. It should be noted that the higher the investment risk, the more attention should be paid to it.