A win-win payoff is the goal. This practice can be performed with little or no borrowed money. It has the purchasing power of the infamous junk bond without the associated debt service. And, the methodology puts even the most conservative business person's mind at ease. Subjective matters such as wage and benefit packages, exclusive responsibilities and ownership cannot be determined after closing.
Due diligence is the in-depth study of an existing business circumstance.
Details studied are financial condition, taxes, employees, salaries and much, much more. Undisclosed information that materializes after settlement, which proves injurious to success, will generaly destroy any new merger scenario. Proper due diligence is vital. Closing can be a new beginning or the beginning to an end. Safety nets, or contractual provisions, pre-determined and designed to permit parties to withdraw from an arrangement, are part of negotiations.