M&A buyers are still looking in the midst of uncertainty. However, buyers will be mindful of added risks caused by COVID-19. These are some contract-related questions that may come up in future due diligence:
- Did the business default on any third-party agreements?
- What are the termination rights on any key contracts?
- Are counterparties adhering to their contracts?
- 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 risk will the business face due to non-performance?
Business owners should review their current practices now, so they’re prepared to address buyer concerns
