Spencer Fane attorney Jason Medley shares insights in his latest article, Due Diligence: The Importance of Running a Nationwide Search and Expanding Debtor Name Variations. Or, How to Plan a Proper Family Reunion, published by IFA Commercial Factor magazine.
In Jason’s article, he explains how thorough due diligence can be beneficial in the long run as it helps catch issues that might otherwise be missed. He emphasizes the need to regularly revisit searches and monitor a company’s standing and changes over time. Additionally, he illustrates that staying proactive and diligent helps lenders avoid surprises and better protect their position.
“Running a nationwide search and using a variant of your prospect’s name may yield more search results that you have to wade through and likely dismiss, and revisiting due diligence periodically can add time and expense to your budget, but knowledge is power, and in this case, it can help you ensure that you have all the data you need to make a proper valuation of your potential client, on the front end and during the life of the deal,” Jason wrote. Likening due diligence to a family reunion, Jason quips, “Like any family reunion, you need to check back in periodically to see who’s shown up uninvited (new liens), who’s changed their name (corporate amendments), or who’s moved to a new state (re-domestications).”
With 26 years of experience, Jason helps banks and other financial institutions structure transactions in a manner that enables them to be efficiently closed, allowing for key stakeholders to maximize benefits and avoid unnecessary delays or costs. His work fully encompasses all aspects of contract negotiations, workouts, intercreditor relations, and secured party collections.
Read his full article here.