Due Diligence in M&A Transactions

Due diligence in mergers and acquisitions (M&A) is the investigative process where the acquiring company reviews the target company's business. This involves examining financial records, legal issues, contracts, operational processes, and potential liabilities to ensure informed decision-making. The goal is to confirm the value of the target company, uncover any risks, and ensure there are no hidden problems. Effective due diligence helps the buyer negotiate better terms and avoid costly surprises after the acquisition. Essentially, it's a thorough check-up before committing to purchase a business.