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Acquisition Due Diligence Process

oboloo Glossary

Acquisition Due Diligence Process

Acquisition Due Diligence is an important process in corporate mergers and acquisitions. It’s a comprehensive analysis of the target company that allows buyers to identify material risks or opportunities prior to completing the deal. During due diligence, potential buyers will assess the target company’s financial statements, review contracts, investigate regulatory compliance, evaluate intellectual property issues, assess environmental risks, confirm key customer relationships, and analyze any other information pertinent to the acquisition. Put simply, it’s a way for buyers to make sure they aren’t walking into any surprises before they enter into an agreement.

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