4.107 Diligence and Disclosures





Diligence is one of the most important parts of the financing process, and also one of the most ignored. It helps investors understand risk and set terms. It helps entrepreneurs fix issues. It affords an opportunity for companies and investors to reflect on all available information to set priorities and strategies. Diligence also protects executives and directors from later claims of liability for failure to disclose all relevant information. What are the securities fraud implications of the disclosure process? How does diligence work? What are representations and warranties and disclosure schedules? What is a diligence memo? How does an investor create a strategic roadmap from diligence?