You are not currently logged in.
Access your personal account or get JSTOR access through your library or other institution:
If You Use a Screen ReaderThis 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
Published by: Euromoney Institutional Investor PLC
Stable URL: http://www.jstor.org/stable/43503519
Page Count: 9
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.
Preview not available
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.
The Journal of Private Equity © 2007 Euromoney Institutional Investor PLC