Hi Gregory,
You have raised an interesting question. I would get an external party to undertake the DD and the top element which I would be asking them to look for are elements of deferred taxation liabilities. Quite often I have found that a target looks great until I realise that they have been pursuing an aggressive tax avoidance policy for which I would then become liable for as the buyer. Additionally, double checking the value of any major assets relative to tax perspective, as aggressive devaluation processes could also leave me with problems.
