Tip of the Week: Patience Pays Off

Complete your due diligence.  This means withstanding the pressure to cut corners that inevitably comes during the heat of trying to complete a transaction.

A well-known celebrity considered participating in a transaction that had not been fully checked out.  I advised him: “A bad deal can often be worse, much worse, than no deal at all.”  Due diligence is no guarantee that a deal will ultimately be successful, but it goes a long way toward ensuring that there are no ugly surprises once the deal is done. If an advisor, investment banker or lawyer suggests that due diligence is not necessary, be sure you understand the risks associated with not checking out your counterparty in a transaction.

Leave a comment