SSS · Transaction Advisory

If a red flag emerges in due diligence, is the transaction cancelled?

Rarely. Most of what due diligence turns up is used to reprice the transaction or to secure it, not to end it. A risk that has been identified can be managed through an adjustment to the pu…

Updated · July 20261 min readCategory · Transaction Advisory
Short answer

Rarely. Most of what due diligence turns up is used to reprice the transaction or to secure it, not to end it. A risk that has been identified can be managed through an adjustment to the purchase price, a condition precedent requiring it to be remedied before closing, a special indemnity aimed at that particular risk, or by holding part of the price in an e…

Rarely. Most of what due diligence turns up is used to reprice the transaction or to secure it, not to end it. A risk that has been identified can be managed through an adjustment to the purchase price, a condition precedent requiring it to be remedied before closing, a special indemnity aimed at that particular risk, or by holding part of the price in an escrow account under the Turkish Code of Obligations (No. 6098).

The red flags that do end a transaction are usually of a different kind: a legal impediment that cannot be repaired, or a loss of trust. Our reports lead with the solution rather than the problem — for every significant finding we propose a concrete contractual mechanism that lets the deal go forward. That way a single risk is managed without putting the whole agreement at stake.

Shall we apply this matter to your situation?

Tell us your specific situation in a few sentences; we'll assess it with the right team.

Get in touch
This content is for general information only and does not constitute legal advice. Please contact our team for an assessment of your specific circumstances.

Related questions

Different regimes apply to Turkish companies with foreign capital and to foreign legal entities; the permit processes vary according to the field of activity, the region, and military-security restrictions. We determine the acquisition route suited to your structure and conduct…

As a rule yes, but most relationships continue without interruption. In a merger, a demerger or a change of legal form, assets, rights and obligations pass to the new structure largely by universal succession under the Turkish Commercial Code (No. 6102). For employment contracts…

For most steps, no. The greater part of the incorporation, tax and banking work can be done without you travelling, on a power of attorney issued at a consulate or executed abroad, apostilled under the Hague Convention and translated into Turkish. The Foreign Direct Investment L…

Transaction Advisory

The right start means a predictable process.

From the first meeting to completion of the work; let's plan every step transparently.