...It has rightly pointed out the benefits of due diligence and this fact cannot be over emphasized. According to Perry and Herd (2004) ‘Between recognizing the potential value or a merger or acquisition and achieving a new and fully integrated enterprise is a dangerous middle ground where anything can happen” It is because of this dangerous middle ground that many have advocated that due diligence should be given a second look. The issue is not the carrying out of due diligence but the efficiency and effectiveness of the exercise. Perry and Herd (2004) advocated three reasons for the increase in the dangerous middle ground, the reasons are cross-border transactions, increased expectations and difficulties in untangling companies that have entrenched behaviours. Engle (2011) warned that due diligence should not be undertaken when decision has already been made as to acquire or merge. According to him doing due diligence when agreement has been said is difficult because then the process is seen as one last hurdle in a long, painful process and the champagne is on ice. Due Diligence must be done before agreements are signed. Engle (2011) summarized the key aspect in the due diligence process incluedes (i) Careful planning (ii) Collection of information both within and outside the firm. (iii) Attaining a working knowledge of the organization in the following areas. (a) industry – nature of industry and who the key players and the cycle in the industry (b) financial condition...
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...Legal Due Diligence Legal Environment of Business / LAW 529 Maria Wood October 25, 2005 Memorandum DATE: October 23, 2005 TO: The COO of ABC venture capital firm FROM: Harichand Chandunair, Legal Expert SUBJECT: Legal Due Diligence I would like to thank the management for giving me the opportunity to study Joe’s landscaping and tree trimming business and make recommendation about the legal issues surrounding the business under consideration. Joe is very successful and has enough clients to keep him busy, along with at least 50 workers, working six days a week. Joe did not have a lot of money to start a commercial landscaping and tree trimming business, but he did it anyway. He started small, but has plans to expand his business. I would say Joe’s idea is excellent. He decided to start a business in Memphis where commercial landscaping and tree trimming business can flourish 8 months every year. “Location” is the key to a successful business. There are several legal and regulatory issues involved in the commercial landscaping and trimming business. Joe’s company is following the Environmental Protection Agency (EPA) requirements, Occupational Safety and Health Association Regulations (OSHA) etc. ABC venture capital firm is least likely to face any legal problems in those areas. It is seen that Joe sometimes fires minorities, women, protected class etc. without stating valid reason. This could result in costly lawsuits...
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...Zhejiang Gongshang University the 2nd Semester of 2014/2015 Academic Year the Final Examination Paper Course: Commercial law Class:International business ( Fall 2013) Student ID: 1301122107 Name: Kim Yuliya Title: Torts resulting from negligence Medicine - simultaneously an art and a science, dealing with a prophylaxis, treatment of diseases and facilitation of suffering. A law is a strictly aimed public rules, which purpose are social order and world peace. Professional physicians well know about all greater penetration of legal principles in their activity. The increasing role of the state in adjusting of medical help, recent splash of processes concerning wrong treatment and permanent increase of the administrative functions laid on doctors demonstrate the depth of intercommunication of medicine and jurisprudence. In this chapter the specific aspects of their co-operation are examined: general principles, wrong treatment, medical documentation as legal certificate, confidentiality, legal registration of fact of death and dying, requirement of examination and interrelation of medical personnel. Aim of my final paper - to give an idea about basic conceptions and terms, necessary for understanding of legal parties of work of doctor in a medical emergency department. Quitclaim. A quitclaim is legal conception meaning the voluntarily shifting off to certain legal responsibility....
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...garden out of a wilderness are bound to succeed. It is an admitted fact that work makes a man active, agile and alert. An industrious man is always strong and sturdy. Work blesses him with zeal and zest. By working hard he gets a glorious status in society. The sweet fruit of his labour benefits not only the man but also his nation and country. Such hardworking men are the real assets of a nation. History reveals that those nations who worked their fingers to bone were honoured and successful. They emerged as victorious nations of the world. They ruled over the world as long as they remained diligent. But when they broke the habit of industry and became lethargic, they were humiliated and disgraced. Islam lays a great stress upon diligence. The holy prophet said. “The hardworking man is friend of Allah.” The holy prophet would do his work with his own hands. He disliked if someone should do his work for him. The holy life of the holy prophet reflects the dignity of work. “nothing is for a man but the thing he struggles for.” The beloved daughter of the holy prophet did her household work herself. She herself would grind flour, bring water and sweep the house. All these examples urge us to be diligent in life. In the present era, the Muslims have lost their grace and honour. The only reason behind it is that they have forgotten the golden traditions of their forefathers. On the other hand, the western nations have adopted the habit...
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...to time. You may not worry about such things at this time in your life, but you do think about them. We are all aware of the economic downturn in the United States, as our nation faces many problems at this time. Unemployment problems are continually in the news with many major corporations laying off employees as part of necessary cutbacks. Some of these may already be affecting your family. Many of you harbor legitimate concerns and are uncertain about your future. Even with conditions that now occur in our economy, a way exists for you to be successful and to land a good job in this country. This key concept or way for you to be successful starts right now no matter your age or grade in school. It can be described in a word: diligence. Diligence means “steady, earnest, energetic application and effort.” The opposite of a diligent person is one who is indifferent, lazy or a sluggard. An indifferent and lazy person displays a lack of interest or concern, placing little or no importance or value on their...
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...Discuss the definition of technology from a strategic point of view. Technology, in strategic terms, refers to the use of machines, and techniques to better the tactical process of a company. It involves the use of a machine or a technique to make tasks and decisions easier in the operations of a company. However, from a strategic stance, technology positions a company in a market. This enhances a corporation’s ability to attain a competitive edge in the market. In strategic aspects, technology acquires optimum performance from a company in a bid to attain superiority in the market. Discuss the role of innovation in the strategic management process. Innovation is an effective tool that offers value to an organization. In the commercial world, there is one thing that is persistent and constant; that is change. Therefore, this necessitates innovation, and creativity to serve as the backbone in organizations. These two principles are vital in every organization that aspires to remain a going concern in the market. A company that embraces innovation assures positive performance in the market as compared to its competitors. Innovation is a market positioning tool in the strategic placement of its products. This ensures a company is able to handle any changes the market will pose. The market is controlled by choice. The customers are those who determine how competitors react to the needs, and demands of the clients. If companies are innovative, they ensure they are prepared at...
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...MGMT 520 Legal, Political and Ethical Dimensions of Business Week 3 - Discussion 2 - Environmental Liability and Due Process In 1979, Paul and John Reardon purchased 16 acres of land located next to a manufacturing plant in Massachusetts. In 1983, a state environmental agency, responding to a citizen's report, tested soil samples from both properties and discovered extremely high levels of polychlorinated biphenyls (PCBs) on the plant site and on the Reardons' property where it bordered the site. Shortly thereafter, the Environmental Protection Agency (EPA) cleaned up the contaminated areas. In 1985, the EPA notified the Reardons that they might be liable for clean-up costs. An EPA investigation of the property in 1987 revealed that some soil was still contaminated. This time, the Reardons cleaned up the property themselves. In March 1989, the EPA placed a lien for an unspecified amount on all of the Reardons' property to secure payment for any clean-up costs for which the Reardons might be liable. The EPA told the Reardons that they could settle the claims against them for $336,709 but noted that this amount did not limit the Reardon’s potential liability. The Reardons filed a motion for an injunction, arguing that filing a lien against their property without any prior notice or hearing violated their due process rights under the Fifth Amendment, which states that no person can be deprived of life, liberty, or property without due process of law. Superfund (the Comprehensive...
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...June 23, 2012 Memorandum Re: ManBank’s loan to Bob Prepared By: Joan, as director for ManBank, was approached by her friend Bob, requesting a loan to start a new airline business. Bob has determined that he would require a loan of $300,000.00 to begin this venture. Bob plans to use the planes he intends to purchase as collateral for the loan. Joan researches Bob’s background and identifies that he has worked in the industry for 12 years and was able to show an increase in regional sales by 28%. Based on this research and Joan’s personal friendship with Bob, Joan recommends that ManBank provide the full loan amount. The loan is granted and Bob begins his business. Within 3 years, Bob’s business goes bankrupt and the bank is only able to recover one half of the loan amount upon the sale of Bob’s planes. The bank is now responsible for a debt of $150,000.00 that they will not be able to recover. Due to this debt, the shareholders of ManBank file a derivative lawsuit against Joan for breach of her fiduciary duty of care. The issue is to determine if Joan’s conduct is protected under the Business Judgment Rule (herein referred to as, BJR), thus, determining if Joan should be held liable for the company’s debt. As outlined in the NPC courseware, the Business Judgment Rule does not provide for a distinct definition. It is a principle that it utilized by the courts in multiple applications and translations. Essentially, the BJR is a corporate...
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...2 x 2 ID Picture 2 x 2 ID Picture ATTACHMENT A FEU CAVITE Department of Hotel & Restaurant/Tourism PERSONAL DATA FORM Name of students: | _____________________________________________ | Course/year/section | _____________________________________________ | Residence address of the students | _____________________________________________ | Parents/Guardians | _____________________________________________ | Landline Number/Cell number of parents or guardians | _____________________________________________ | Mobile number of Students: | ______________________________________________ | Email address of the students: | _______________________________________________ | Name of company/Host partner | _______________________________________________ | Address of company/host partner: | _______________________________________________ | Department in the company where student is assigned. | _______________________________________________ | Name of immediate supervisor in the department where the student is assigned: | _______________________________________________ | Contact number of Immediate supervisor: | ______________________________________________ | Name and telephone number of person to contact in case of Emergency: | ______________________________________________ | Signature of Students: ______________________________________________ 2 x 2 ID Picture 2 x 2 ID Picture ATTACHEMENT B FEU- CAVITE Department...
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...ISM 3321 – Security Essentials Chapter 3 Question and Answers 1. What is the difference between law and ethics? Difference between law and ethics are that laws are formal, usually written descriptions of actions and consequences while ethics are less formal and typically deal with how an individual or group of people view actions. 2. What is civil law, and what does it accomplish? Civil Laws are laws that govern a nation and resolves conflicts between people and organizations. 3. What are the primary examples of public law? Examples include Criminal, Administrative, and constitutional law. 4. Which law amended the Computer Fraud and Abuse Act of 1986, and what did it change? The law that amended the Computer Fraud and Abuse Act of 1986 is the National Information Protection Act of 1996. It changed section of the CFA Act and also increased the penalties for selected crimes. 5. Which law was specifically created to deal with encryption policy in the United States? The Security and Freedom through Encryption Act of 1999. 6. What is privacy in an information security context? In the context of Information Security and as the text defines it, privacy is “state of being fee from unsanctioned intrusion.” 7. What is another name for the Kennedy-Kassebaum Act (1996), and why is it important to organizations that are not in the health care industry? The Health Insurance Portability and Accountability Act of 1996 (HIPAA) is another name for The Kenndy-Kassebaum Act (1996)...
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...DUE DILIGENCE MEMORANDUM TO: JJJ Company FROM: Riordan Manufacturing DATE: September5, 2012 RE: JJJ Company to complete the Due Diligence to complete by- Setember5, 2012- For any transaction takes place. As a result to the investigation of the proposed acquisition, Riordan Manufacturing needs more information from the company to make a firm decision on behalf of the company. Please provide us with the information stated below. Please note this memorandum is designed so you can indicate your response on the form, in substantial time frame. Accordingly, please check all appropriate boxes to the right that apply to you as indicated in the request make sure to indicate whether the boxes is applicable or not applicable and relevant documents or explanation is enclosed. To make sure your response item satisfies the responses request in other items, please so states. Unless something else different is stated, please enclose all requested information for your company and all of its subsidiaries. Make sure that all documents are completed and sign on the last page as indicated in the request and return a copy with the memorandum to Riordan Manufacturing, along with the applicable documents. When sending the documents to the company makes sure to retain a copy to help facilitate the preparation of the schedules to the definitive purchase agreement. All information that is provided will be treated...
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...Discussion Assignment―Define RFP Response Strategy Your original post should address these topics: As a seller, using M6.1 to M6.2, define how your team will respond to the RFP for your project. As the seller team’s Director of Professional Services, respond to two other original posts: Verify that the team has properly understood project scope. Verify the team’s assessment that the RFP is qualified for submitting a bid. Check that the due diligence is properly completed. Response Team Includes:IxD Director, Sales lead, Technical expert, Contract/legal team representative, Accounting representative, EVP and Stakeholders, Production Team, Project manager, Business analyst representative Qualify the Opportunity: Due to previous experience with seller, it is known that an easy partnership will be formed. Scope is clearly described with well defined and generous to deliver milestones deliverables Screen Buyer: The buyer contacted the seller ready to purchase. After meetings with seller’s production team members, SMEs, stakeholders, and project sponsor, It is clear they are in a position to move forward. ID Internal Requirements: Historically, working with the organization has proven to be beneficial both by building name recognition and financially. The buyers organizational goals align well with our organization. The key milestones and deliverable dates are very generous and we project the project could be done early then buyer is projecting. Buyer has stated...
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...BASIC STEPS FOR ALL CLIENTS AND ENGAGEMENTS Practitioners should exercise due diligence in accepting all clients and engagements. Basic steps include: Evaluate prospective client integrity. Personally meet with prospective clients (senior management, owners, and/or directors for business clients). Ask for and follow up with references, including attorneys, bankers, other business consultants, and major vendors or customers. Verify that relationships were not terminated due to disagreements regarding business operations or outstanding invoices. For key executives of business clients (especially those not known by the CPA firm), ask for and follow up with personal references, including previous employers and business associates. Consider obtaining a credit history for individual tax and financial planning clients. If the prospective client is changing CPA firms, request permission to contact the predecessor firm to investigate issues such as the client’s consideration of advice provided, integrity, ethics, reasonableness of expectations, experience and qualifications of the staff, and business policies and procedures including cooperation, timing of the engagement, and whether the client pays bills on time. The previous CPA firm can provide only limited information unless it obtains an Internal Revenue Code Sec. 7216 disclosure statement from the client. Even so, the prospective client’s reaction to this request (and the response of the predecessor firm) may be indicative...
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...types of business communication to use based on the accounting scenario. Since there was no collaboration by the learning team, this report is based solely on the opinion of one student. There are various factors that need to be considered when writing a business communique. The purpose, audience and leadership style are important considerations to be made when deciding on which type of communication to when reporting on the acquisition of a company. The first line of communication would need to be between the staff accountant and her accounting peers. The type of communication that would need to be used would be an interoffice memo. A memo would be an appropriate form of communication to advise the accounting department of the due diligence investigation. The memo can also be used to share with her peers the assignment and what needs to be done to complete the assignment. The interoffice memo is an ethical form of communication for this audience. The second line of communication would be between the staff accountant and the sales manager. The staff accountant is advising the sales manager of the results of the review of JJJ’s financial condition. An appropriate and ethical form of communication to use for this situation would be an email. The next line of communication would be between the accounting manager and the ad hoc committee. The accounting manager is reporting his recommendation not to move forward with the acquisition. The type of communication to use in...
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