M&A buyers are still active in the midst of this uncertain business environment. However, they are mindful of added risks caused by COVID-19.
These are some contract-related questions that are likely to come up in future due diligence in light of COVID-19:
- Did the business default on any third-party agreements?
- What are the termination rights on key contracts?
- Are counterparties adhering to their contract obligationss?
- Were terms modified or waived in a way that would impact future enforcement, force majeure, or other provisions that would enable termination or suspension of an agreement?
- What ongoing challenges and risks will the business face due to non-performance?
Business owners should review their current practices now, so they’re prepared to address buyer concerns.
For further information or to discuss a current M&A need, contact Al Statz, 707-781-8580 or email@example.com in our Petaluma, California office.