For sale: the need for due diligence

Kam Gill and Dilpreet Dhanoa consider the role that the corporate criminal off ence has to play in the evoluti on of a business

Many businesses either acquire or merge with other entities, or sell a part or all of their trade or assets. Mergers and acquisitions do not only carry with them the opportunity for enhancing a business’s activities; critically, from a risk perspective they can also add to its liabilities and potentially increase a business’s exposure as to how it conducts its affairs.

Due diligence exercises are key to ensuring that the entity being acquired is appraised, verified and valued correctly; and their purpose and remit has become even more essential. Due diligence now ought to encompass consideration of a business’s compliance with the corporate criminal offence (CCO) legislation. 

Facilitation of tax evasion