General Discussion

According to a definition, “A due diligence checklist is a tool used by investors, business owners, and consultants in analyzing a company or organization that they’re acquiring through either a sale, merger or other methods.” Broadly speaking, a due diligence checklist is considered as an organized way to analyze a target company that you are acquiring through sale, merger, or another method. With this checklist, you would be able to figure out about a company’s assets, liabilities, contracts, benefits, and potential problems. Due diligence checklists are generally arranged in a basic format. Although these formats can be changed to fit different industries.

Due diligence is a kind of investigation which is done before entering into a transaction with some other party to check the facts. The purpose of due diligence or this investigation is to protect both parties, although primarily the purchaser. It can help to reveal the potential liabilities and financial matters, just to make sure that nothing is hidden. Its basic aim is to check the valuation of assets and liabilities, assess the risks within a business, and identify areas for further investigation.

There are many ways to stop or fight a hostile takeover. Starting with, Poison Pill Defense. It is a powerful tool which is a distribution to the target’s shareholders of the rights to purchase shares of the target or the merging acquirer at a substantially reduced price. A company can also go for stock repurchase which is a purchase by the target of its own-issued shares from its shareholders. Next there is Staggered Board Defense. In this a company might segregate its board of directors into different groups and only put a handful up for re-election at any one meeting. Another way is White Knight Defense, it is a strategic merger that does not involve a change of control and relieves the target’s management of the responsibility to seek the best price available. There are many other ways you can try like Pacman, lockups, Greenmail Defense etc.