Analysis of the transaction object by the potential buyer is known as due diligence or a pre-acquisition audit. It balances the information asymmetries between the buyer and the seller. Potential partner information and documentation is made available, allowing a detailed picture to be gained of the target company.
- Maintaining confidentiality
Access to data requires special rights as it involves particularly sensitive data.
Only after the due diligence can a clear statement on the strengths and weaknesses of the target company be made.
- Future approaches after acquisition
The insights into the company details allow to sound out future approaches and develop preliminary strategies for the time following the acquisition.