Method of Conducting a Due Diligence Procedure in a Business Transaction
OwnerJohn Michael EDISONinventor
Life of this patent
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Abstract
A method of conducting a due diligence procedure of a contemplated, continuing or follow-up business transaction between first and second parties generally consisting of devising a list of inquiries, assigning values to such inquiries, establishing levels of risk exposure due to each response to such inquiries, eliciting responses to such inquiries and the assignment of a level of risk exposure to each of such responses, and evaluating the relevant risk exposure in proceeding with such transaction by a consideration of the values assigned to such inquiries and the assigned levels of risk exposure to responses to such inquires.
Claims26
A method of conducting a due diligence procedure of a contemplated transaction between a first party and a designated second party, comprising:
- devising a list of inquiries concerning said second party, potentially impacting said transaction, by a third party;
- assigning a value to each of said inquiries commensurate to the perceived degree of risk exposure attendant to the subject matter thereof, by said third party;
- designating levels of risk exposure assignable by said first party to each response to said inquiries, by said third party;
- eliciting responses to said inquiries and the assignment of a level of risk exposure to each response to said inquiries, from said first party by said third party;
- evaluating the relative risk exposure in proceeding with said transaction on the bases of a consideration of said established values of said inquiries and the assignment of a level of risk exposure to each response to said inquiries, by said third party;
- and
- reporting said evaluation of relative risk exposure to said first party by said third party.
A method of conducting a due diligence procedure of a contemplated transaction between a first party and a designated second party comprising:
- devising a list of inquiries concerning said second party, potentially impacting said transaction, by a third party;
- assigning a value to each of said inquiries commensurate to a perceived degree of risk exposure attendant to the subject matter theory, by said third party;
- designating levels of risk exposure assignable by said first party to each response to said inquiries, by said third party eliciting responses to said inquiries from said second party, by said third party;
- submitting said responses from said second party and said levels of risk exposure to said first party, by said third party;
- eliciting an assignment of a level risk exposure to each of said responses to said inquiries from said first party by said third party;
- evaluating the relative risk exposure in proceeding with said transition on the basis of a consideration of said establishment values of said inquiries and the assignment of a level of risk exposure to each response to said inquires, by said third party;
- and
- reporting said evaluation of relative risk exposure to said first party by said second party.
A method of conducting a due diligence procedure of a prospective transaction between a first party and an undesignated, potential second party comprising:
- devising a list of inquiries concerning said second party, potentially impacting said transaction, by a third party;
- assigning a value to each of said inquiries commensurate to a perceived degree of risk exposure attendant to the subject matter thereof, by said third party;
- designating levels of risk exposure assignable by said first party to each response to said inquiries, by said third party;
- eliciting responses to said inquiries from said second party, by said third party;
- storing said inquiries and responses of said second party in a database, by said third party;
- retrieving said inquiries and responses of said second party from said database by said third party, upon notification by said first party to said third party of the identification of said second party as a party to a contemplated transaction between said first and second parties;
- submitting said retrieved inquiries and responses of said second party to said first party, along with said designated levels of risk exposure, by said third party, eliciting the assignment of a level of risk exposure to each of said responses to said inquiries;
- evaluating the relative risk exposure in proceeding with said transaction on the bases of a consideration of said established values of said inquiries and the assignment of level of risk exposure to each response to said inquiries, by said third party;
- and
- reporting said evaluation of relative risk exposure to said first party by said third party.
Dependencies are inferred from the claim text.