Due diligence is a crucial step in the mergers and acquisitions (M&A) process, involving meticulous research and analysis to assess the target company’s financial health, legal compliance, and overall viability. It is typically conducted by a team of experts, including legal counsel, accountants, and industry specialists, to uncover any potential risks or liabilities that may impact the transaction.
Due diligence plays a pivotal role in protecting the acquiring company’s interests by providing valuable insights into the target company’s operations, assets, and liabilities. By conducting thorough due diligence, potential acquirers can make informed decisions, mitigate risks, and maximize the chances of a successful post-acquisition integration.