M&A attorneys - how do you determine whether to diligence more immaterial aspects of a Company’s corporate history (annual filings, qualification to do business, blue sky compliance)

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Clients risk appetite and general deal size

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If it’s immaterial, it’s generally not worth Biglaw fees to investigate it. Good standings are easy to pull and will tell you if the entity is delinquent with its jurisdiction of organization. You get reps as to the other things, including qualifications. And the penalties for not being qualified tend to be fairly mild (eg you just need to become qualified in order to bring a lawsuit or something like that).

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Asset vs equity deal also influences our approach

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