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What happens when you do not do due diligence properly?

Ever thought why waste your money on due diligence when you are in the process of buying a company and the old owner provided you what you thought was everything?  If you received a letter on closing stating that the old owner did not for example do something, is that good enough?  Can you rely on that?  If that statement was false, now what consequences will result and how much will your good faith cost you trying to fight something that you did not realize existed?... More

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