A company’s growth can come through acquisition or merger transactions. These procedures are complex and not without risk, which is why a correct and timely diagnosis of the situation is essential to conduct successful M&A strategies.
A due diligence procedure consists of in-depth investigation and verification activities on the tax, financial, operational and accounting situation carried out on an organization that is the subject of interest to be acquired.
Due diligence protects the potential acquirer from hidden tax or financial risks as well as civil liabilities. This practice clearly identifies the strengths and weaknesses of the organization being examined and allows its actual market value to be determined.
Investigation and in-depth activities carried out through due diligence may include:
The duration is extremely variable, depending on the complexity and quantity of the issues to be examined. A due diligence can last from a few weeks to several months.
