Due Diligence ('DD'), in simple terms, is a
comprehensive audit of a corporate entity conducted in relation to
a transaction to assess risks and confirm facts. It involves an
in-depth investigation of the company's documents, including
financial and legal documents, as well as its day-to-day
operations. This exercise ensures that the interests of the
investor are protected in the long run and facilitates the
decision-making process.
1. Introduction
Mergers & Acquisitions
('M&A')1 are strategic
business moves in which one or more business entities merge into an
existing business entity or are acquired by another. These
transactions can involve in-market or cross-border mergers. The
assets and liabilities of the amalgamating company become those of
the acquirer company or investor, therefore, M&A involves
substantial investment and risks. Consequently, it becomes
pertinent for the investing company to assess the risks and
opportunities associated with the proposed
