Due Diligence in Mergers & Acquisitions

Due diligence in mergers and acquisitions is the comprehensive process where the acquiring company thoroughly investigates the target company's financial health, legal standing, operations, and other key aspects. Its goal is to ensure there are no hidden problems, understand the true value of the business, and identify potential risks or liabilities. This careful review helps both parties make informed decisions, negotiate fair terms, and confirm that the acquisition aligns with strategic objectives. Essentially, due diligence is a detailed check-up to minimize surprises and ensure a smooth transition.