Due Diligence Opportunity Cost

When examining the books of a potential acquisition it is important to be mindful of any discontinuities that may represent an inaccurate picture of performance. These circumstances could include downsizing and restructuring the business through a trigger of early retirement benefits upon layoffs being implemented or possibly large portions of the business being disposed of. There could be settlement proceedings regarding litigation through damages and fines being paid or even possibly awards through settlements. Changing accounting methods could even be a factor and reviewing the accounting notes can save a lot of opportunity cost when it comes to due diligence. It is always good measure to run through these conclusions expediently as to reduce time spent on research.