Question 2a
Marking Guide
benefit of due diligence
up to 2 marks for each benefit discussed for a maximum of three benefits:
– identification of assets and liabilities
– valuation of assets and liabilities
– review of operational issues
– examination of financial position and performance
– added credibility and expertise
– added value for negotiation of purchase price
– other advice can be given, e.g. on obtaining finance
maximum marks6