Originally Posted by
pax britanica
Even if you get access to the books there are plenty of stories from the business world where pre M&A due diligence failed to uncover catastrophic problems .
As in the QANTAS . Jetstar case the books tell you one thing but reality is another and in a situation like Norwegian arcane financial engineering might make it very very difficult to get a true picture of the real state of play.
Buyer beware
From a previous life I can tell you that any decent management accountant worth his (or her) salt will be able to decipher the bull**** and give a reasonable assessment of the state of play to the buyer.
Due diligence may not uncover everything but if people are found lying they are liable. Additionally, any contract of sale will include certain warranties valid for 'x' period so its not quite as simple as them hiding stuff and IAG not finding it.