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Standards of Care for Due Diligence in Company Acquisitions


The board of directors is entitled to rely upon input of experts, including outside legal counsel and independent accountants, as well as reports prepared by management of the company. The due diligence checklist covers a broad array of topics that are designed to elicit responses from the target company so the target company will either prepare narratives describing certain items of interest to the acquiror or furnish documentation that the acquiror will have the opportunity to review.