Association of Taxation Technicians (ATT) Law CBE Practice Exam 2026 – Your All-In-One Guide to Exam Success!

In asset sales, due diligence focuses on verifying what is being bought and its value. The most common items reviewed are the stock, the debtors (accounts receivable), goodwill, and other intellectual property that form part of the purchase. Checking these elements ensures you know exactly what you’re paying for, confirms ownership, and flags any issues that could affect value—such as obsolete stock, uncollectible debts, or IP rights problems. While TUPE matters related to employees might come up, contracts do not automatically transfer simply because of TUPE, so due diligence examines the implications rather than assuming automatic transfer. The document outlining the main points of agreement is a separate pre-contract instrument, not the focus of due diligence, and a 20-day breathing space from creditors is not part of asset-sale due diligence.