What is buyer due diligence and when does it occur?
Due diligence usually occurs after a purchase agreement or letter of intent is executed by both parties. These agreements usually have due diligence contingencies that allow the buyer to validate the facts and assumptions that contributed to their offer, and assure the seller that they are dealing with a qualified and compatible party. If the parties are satisfied with the information received, they release their contingencies and proceed with the purchase. If not, the deal may be renegotiated or cancelled.
