Reflections from an energy and petrochemical M&A transaction: why the value of due diligence lies not in the number of risks identified, but in how effectively those risks are translated into transaction advantages for the buyer.
I recently completed a legal due diligence (“LDD”) report for an energy and petrochemical M&A transaction.
While the experience is still fresh, I wanted to capture a few reflections — not only as a personal record, but also in the hope that they may be useful to fellow lawyers, investors, and professionals involved in M&A transactions.
This was one of the larger due diligence projects I have independently led to date. The target company operated in a highly regulated, asset-intensive industry, with an estimated valuation of several billion RMB. The scope of review covered a wide range of areas, including land use rights, manufacturing facilities, production equipment, hazardous chemicals operations, environmental compliance, workplace safety, financing
