Park Avenue Business Forum - 1st Edition - 2007  

The Importance of Due Diligence
by Frank L. Pohl, Attorney At Law
Partner, Pohl & Short, P.A., Winter Park

When making a large purchase, such as a home or a car, it is important to find out as much as you can about the item you are purchasing. The same is true when purchasing a business, notably when the purchase will be structured as a stock acquisition. Unlike an asset acquisition, where a purchaser may choose which business liabilities, if any, he is willing to assume, a purchaser in a stock acquisition generally inherits all of the liabilities of the purchased business. Therefore, completing a thorough legal "due diligence" review to uncover such liabilities is an essential part of the acquisition process. More.....