Thursday, June 12, 2003

GOOD DUE DILIGENCE PRIMER Check out VentureBlog's review of what a venture capital firm looks for in its due diligence investigation of a company. Keep in mind though, that this isn't all of the due diligence that will be performed...there's still the legal due diligence. While legal due diligence in a venture deal may be much less comprehensive than in an M&A deal, it still has its place, and will involve analysis of the company's organizing documents, capitalization and equity issuances, employment and third party contracts to ensure that they are enforceable and don't overburden the company with potential liability, and issues related to ownership of real estate, tangible and intangible property, as well as the quality of licensing agreements (so don't get your sales guy to draft them).

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