Implications on Mergers and Acquisitions
Y2K is one of the major issues that should be addressed and looked into in mergers and acquisitions. Appropriate due diligence examination of a target non-Y2K compliant company should necessarily include this area. Consequently, additional protection clauses on escrow payment arrangements and posting of performance bonds, among others, should be insisted upon by the acquiring entity. In this manner, the transaction becomes trouble-free thereby avoiding costly and tedious litigation.