Mergers and acquisitions (M&A) due diligence refers to the process of conducting a comprehensive examination and evaluation of a target company's financial, legal, operational, and strategic aspects before completing a merger or acquisition transaction. The purpose of due diligence is to assess the target company's strengths, weaknesses, risks, and opportunities, enabling the acquirer to make an informed decision about the transaction. The due diligence process typically involves gathering and analyzing relevant information and documents related to the target company. This can include financial statements, tax records, contracts and agreements, intellectual property documentation, customer and supplier contracts, employee information, regulatory compliance records, and any other information that may impact the transaction.

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During the due diligence process, the acquiring company may engage various professionals, such as accountants, lawyers, and industry experts, to conduct specialized assessments and provide their expertise. They may review financial statements to assess the target company's financial health, evaluate legal contracts and regulatory compliance to identify any potential legal risks, examine operational processes and systems, and analyze the competitive landscape and market trends.