The Latin phrase caveat emptor is certainly back in vogue. Although historians can’t pinpoint its precise origin, its appearance dates back at least to 16th century English literature. Over the years, the phrase’s interpretation has been truncated to the pithy, “Let the buyer beware.” But in its original formulation, the entire phrase cautioned that a buyer “ought not be ignorant of the nature of the property he is buying from another.” Despite its age, this cautionary advice has great relevance when it comes to mergers and acquisitions in the 21st century. That makes it fitting to consider some of the strategic, cultural and regulatory considerations boards should address in deciding whether—and when—to purchase another business.
