Due diligence is a crucial step in the mergers and acquisitions (M&A) process. It involves a comprehensive review of a target company’s financial, legal, and operational status to assess its risks and opportunities.
Due diligence is essential for several reasons. First, it helps to identify any potential red flags that could jeopardize the transaction. Second, it provides acquirers with a clear understanding of the target company’s strengths and weaknesses, which can help them to make informed decisions about the deal. Third, due diligence can help to mitigate the risk of post-acquisition disputes.