During the due diligence process, what are some significant warning signals?
strong>The seller has: * Imposed an unrealistic time frame for the transaction. * Withheld key information. * Limited access to information and people. * Provided unclear or biased reasons for selling. * Presented information that is significantly misleading or false. * Displayed a lack of commitment to remain after the sale. If these signals are present you should: * View them as real warnings of increased risk to the transaction. * Increase the amount and extent of due diligence procedures to ensure a realistic assessment of the business. * Determine whether to invest more time investigating the opportunity or to simply pass on the deal.
