Due diligence, in the context of mergers and acquisitions (M&A), is a crucial process involving the investigation and verification of a target company’s financial and legal standing before completing a transaction. It aims to uncover any potential risks or liabilities that may impact the acquiring company’s decision-making.
Conducted by specialized M&A lawyers, due diligence plays a pivotal role in corporate acquisitions. It provides a comprehensive assessment of the target company’s assets, liabilities, and overall business operations. This process helps acquirers make informed decisions, mitigate risks, and negotiate favorable terms during the acquisition.