Why Due Intelligence is important for Mergers & Acquisition ?

  • To investigate into the Affairs of Business as a prudent business person
  • To confirm all material facts related to the Business
  • To assess the Risks and Opportunities of a proposed transaction
  • To reduce the Risk of post-transaction unpleasant surprises
  • To confirm that the business is what it appears
  • To Create a Trust between two Unrelated Parties
  • To identify potential deal killers defects in the target and avoid a bad business transaction
  • To gain information that will be useful for Valuing Assets Representations & Warranties for Indemnification Negotiating Price Concessions
  • To verify that the transaction complies with investment or acquisition criteria
  • To Investigate & Evaluate a Business Opportunity
  • It Involves an analysis carried out before acquiring a controlling interest in a company
Due Diligence is not the judgment making
It just brings out fact to forecast