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There are a few red flags:
1) Non compliance to laws, licenses, IP, tax laws
2) Violations to laws (eg tax evasion)
3) Huge liabilities
4) Litigation
The phrase “don’t ask don’t tell”, when doing due diligence and there is a legal requirement for something with customers but the target company says they customers/partners haven’t asked if we have that so we won’t tell them we don’t.
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