Due diligence is a crucial step in the mergers and acquisitions (M&A) process, involving a thorough investigation of a target company before a transaction is completed. Conducted by Mergers and Acquisitions lawyers, this process helps identify and assess potential risks, liabilities, and opportunities associated with the acquisition.
Due diligence plays a vital role in protecting the acquiring company’s interests, ensuring informed decision-making, and mitigating post-acquisition risks. It provides valuable insights into the target’s financial health, legal compliance, operations, and market position, enabling a comprehensive evaluation of the investment’s viability and potential returns.