All of the following are true of buyer due diligence except for
A) Due diligence is the process of validating assumptions underlying valuation.
B) Can be replaced by appropriate representations and warranties in the agreement of purchase and sale.
C) Primary objectives are to identify and to confirm sources and destroyers of value
D) Consists of operational, financial, and legal reviews.
E) Endeavors to identify the "fatal flaw" that could destroy the deal

Question

Quizplus · Accepted Answer

Buyer due diligence cannot be replaced by appropriate representations and warranties in the agreement of purchase and sale. It is a separate and necessary process to validate assumptions underlying valuation, identify and confirm sources and destroyers of value, conduct operational, financial, and legal reviews, and identify any potential fatal flaws that could destroy the deal.

All of the Following Are True of Buyer Due Diligence