POSSIBLE HURDLES IN CARRYING OUT A LEGAL DUE DILIGENCE

Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 Uma asked about 3 years ago

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 narahari answered about 3 years ago

1. Non availability of information: In many occasions, when a person carries out due diligence, the required information may not be available or insufficient to derive a complete picture. 2. Unwillingness of target company’s personnel in providing the complete information: Non-co-operation of target company’s personnel may also prove to be a major hurdle during due diligence process. Sometimes, the available information would be pretended as not available. 3. Providing of incorrect information: Providing of incorrect information by the target personal also acts as a major hurdle in the due diligence process.

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 lochan answered about 3 years ago

**POSSIBLE HURDLES IN CARRYING OUT A LEGAL DUE DILIGENCE** 1. Non availability of information: In many occasions, when a person carries out due diligence, the required information may not be available or insufficient to derive a complete picture. 2. Unwillingness of target company’s personnel in providing the complete information: Non-co-operation of target company’s personnel may also prove to be a major hurdle during due diligence process. Sometimes, the available information would be pretended as not available. 3. Providing of incorrect information: Providing of incorrect information by the target personal also acts as a major hurdle in the due diligence process. 4. Complex tax policies and hidden liabilities: Complex tax policies & structures may create a number of hidden tax liabilities, which may not be easy to track. 5. Multiple Regulations and its applicability: Owing to the new and emerging legislations, it is difficult to interpret whether a specific legislation is applicable for business and getting legal opinion on the same would prove to be very costly. 6. Process in providing data: Multiple Layers of review and scrutiny before data is provided for due diligence also hinders and delays the due diligence process. Thanks

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