Name two ways in which due diligence shall protects the benefit of the bargain in an...

Name two ways in which due diligence shall protects the benefit of the bargain in an M&A process?

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Expert Solution

Due diligence in merger and acquisition will mean that the buyer will be having a better prospective of the sellers business, and both the parties will be aware of each others obligations and advantages.

two ways in which due diligence protect the bargain arising out of merger and acquisition process for as follows-

A. It will help in in determining the terms and conditions and the pricing power of both the entities in fixation of the the acquisition for the merger price and it will be helpful in locking those prices with a view to protect the interest of the shareholders of both the companies.

B. Another way by which due diligence will be protecting the benefit of the bargain would be that both the entities will be knowing each other's threat and opportunities as well as they will also be knowing each others core competitiveness so it will help them to maximise the advantage and minimise the threat of each other's business through due diligence.

jeff jeffy answered 1 year ago

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