Tushar Srivastava & Y. Keerthana Reddy, Amity Law School, AUUP
ABSTRACT
Due Diligence is a thorough study or inquiry into the operations of a business entity (referred to as the "target company") conducted by a person or a corporate entity intending to buy, combine, or make a strategic or financial investment in such corpora,ation. The primary goal of a due diligence process is to identify, quantify, and reduce the risks and liabilities involved with the proposed deal, as well as to estimate the target company's worth. Depending on the nature of the transaction, due diligence might take the shape of legal due diligence, financial due diligence, property due diligence, information technology Due Diligence, or environmental due diligence.
The authors intend to create a framework that explains the primary sectors of due diligence, the due diligence mechanism, and the due diligence principles. In order to provide an overview of the complete system, this paper delves into the multidimensional structure of a due diligence process and then highlights a few tragedies caused by inadequate due diligence.
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