Buyers routinely perform due diligence on sellers, but sellers rarely perform due diligence on buying firms.

Question

Quizplus · Accepted Answer

This statement is false. While it is true that buyers typically perform due diligence on sellers, sellers also have a responsibility to perform due diligence on potential buyers. This can include reviewing financial statements and credit reports, as well as researching the buyer's industry reputation and performance. Performing due diligence on a buyer can help a seller to identify potential risks and avoid entering into a transaction that may not be advantageous.

Buyers Routinely Perform Due Diligence on Sellers, but Sellers Rarely