Due Diligence and Feasibility Studies: Rapid Fire

What this video covers

• Why Regulation D exempts registration but never the antifraud rules, and how a weak investigation violates both federal antifraud provisions and Financial Industry Regulatory Authority standards
• The three simultaneous conditions for the reporting-company shortcut, and why most private issuers fail the first one
• Why every offering requires a fresh investigation, and why smaller companies of recent origin need a deeper one than established issuers
• The distinction between financial data (issuer-supplied numbers) and research (the firm's own independent verification through customer calls, supplier calls, and litigation checks)
• The five components of due diligence and the five minimum investigation items tested on every single offering
• How red flags defeat reliance on audited financial statements, issuer counsel due-diligence reports, and even the offering document itself
• Why drafting the private placement memorandum raises the investigation bar, and why reliance on syndicate managers or counsel shifts work without shifting responsibility