Mergers & Acquisitions

Resources: Glossary

Don’t be confused or intimidated by any terms or abbreviations in the M&A world. You’ll find answers here.

Due Diligence

Definition

The thorough verification and investigation of a business after a letter of intent is accepted to determine if the parties wish to proceed with the transaction.

Tips

Due diligence ranges from 30 days to 60 days for most transactions. Traditional or technical due diligence focuses on financial information, taxes, legal and regulatory compliance, environmental compliance, human resources, contracts, information technology, and so on. Strategic due diligence explores whether the potential of the deal is realistic by testing the rationale for the acquisition.

Related Resources

M&A Due Diligence Preparation

M&A Due Diligence | Checklist & Overview

M&A Basics | The Term Sheet

M&A Basics | The Letter of Intent