Buyers should not be concerned about performing an exhaustive due diligence since in doing so they could degrade the value of the target firm because of the disruptive nature of a rigorous due diligence. The buyer can be assured that all significant risks can be handled through the standard representations and warranties commonly found in agreements of purchase and sale.

Question

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Buyers should always perform a thorough due diligence to uncover any hidden risks, liabilities, or other issues that could impact the value of the target firm. Relying solely on representations and warranties may not provide enough protection for the buyer. While an exhaustive due diligence may be disruptive, it is necessary to make an informed decision and negotiate the best terms for the purchase agreement.

Buyers Should Not Be Concerned About Performing an Exhaustive Due