Access

You are not currently logged in.

Access your personal account or get JSTOR access through your library or other institution:

login

Log in to your personal account or through your institution.

If You Use a Screen Reader

This content is available through Read Online (Free) program, which relies on page scans. Since scans are not currently available to screen readers, please contact JSTOR User Support for access. We'll provide a PDF copy for your screen reader.

The Due Diligence Process—Guiding Principles for Early Stage Innovative Products and Venture Capital Investments

Sven De Cleyn and Johan Braet
The Journal of Private Equity
Vol. 10, No. 3 (Summer 2007), pp. 43-51
Stable URL: http://www.jstor.org/stable/43503519
Page Count: 9
  • Read Online (Free)
  • Subscribe ($19.50)
  • Cite this Item
Since scans are not currently available to screen readers, please contact JSTOR User Support for access. We'll provide a PDF copy for your screen reader.
The Due Diligence Process—Guiding Principles for Early Stage Innovative Products and Venture Capital Investments
Preview not available

Abstract

Mergers and acquisitions of small, innovative firms require special treatment of the due diligence process. The asymmetry in organisational order of magnitude would otherwise force the smaller, 'target' venture to become a puppet in the hands of the larger, often multinational company. The aim of this article is to provide a guideline for smaller, new technology-based firms to face the power disequilibrium. After a brief introduction to the nature of the due diligence process, the article will discuss dangers of due diligence as perceived by both the disclosing and the receiving party. Special attention will be paid to the concepts of the White Room, the White Book and the need for gradually increasing disclosure of one party and growing commitment — both financially and contractually — of the other. For each phase of the due diligence process, content of the disclosure is discussed, as well as legal, financial and procedural aspects.

Page Thumbnails

  • Thumbnail: Page 
43
    43
  • Thumbnail: Page 
44
    44
  • Thumbnail: Page 
45
    45
  • Thumbnail: Page 
46
    46
  • Thumbnail: Page 
47
    47
  • Thumbnail: Page 
48
    48
  • Thumbnail: Page 
49
    49
  • Thumbnail: Page 
50
    50
  • Thumbnail: Page 
51
    51