The actual price paid for a target firm is unaffected by the buyer's due diligence.

Question

Quizplus · Accepted Answer

The actual price paid for a target firm can be influenced by the findings of the buyer's due diligence. For example, if the due diligence uncovers hidden liabilities or risks associated with the target firm, the buyer may negotiate a lower purchase price or change the terms of the acquisition to mitigate these risks. On the other hand, if the due diligence reveals positive aspects of the target firm, such as strong intellectual property or a loyal customer base, the buyer may be willing to pay a higher price.

The Actual Price Paid for a Target Firm Is Unaffected