The Due Diligence Imperative: Safeguarding Merger And Acquisition Transactions
- IJLLR Journal
- 8 hours ago
- 1 min read
Shruti Joshi, School of Law, Devi Ahilya Vishwa Vidyalaya, Indore
ABSTRACT
In today’s dynamic business landscape, Merger and Acquisition(M&A) serve a pivotal role in companies expanding their business, accessing markets and for competitive advantages. While these transactions unlock substantial opportunities, they also have inherent risks and pose challenges that may lead to financial setbacks, reputational disruption and legal entanglements. One of the most influential factors in determining the outcome of Merger and Acquisition is due diligence, which not only shapes the success but also the failure of the transaction. Due diligence, an inevitable step, is an exhaustive assessment to examine the operations and conduct of the companies in depth.
This article provides an insight into the fundamentals of due diligence and its undeniable cruciality in the corporate world, where despite its established prominence, numerous firms disregard the process due to time constraints, financial burden and whatnot, leading to unforeseen liabilities. By emphasizing the necessity of an in-depth evaluation, this study underscores how proper examination of the firm can safeguard the companies from negative repercussions and ensure a favorable conclusion.
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