Due Diligence m&a

Hi,

I have a question to those involved in M&A-transactions:
The target-company has to open its books to the bidder during the due diligence process.
Does the bidder also have to open up his books to the target?

I mean, if the transaction is structured as a share-deal, the target-company might want to know more about the bidder and about possible risks.

Thanks!

3 Comments
 

If it's a friendly deal for shares the bidder will open their books to the target. It can often be contentious though in terms of how much they disclose. Typically things will go a bit back and forth and in the spirit of executing the transaction they'll work something out. Naturally PF ownership is also a consideration when determining how much reciprocal dilligence needs to be done.

 

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