The Role Of Legal And Financial Due Diligence In Shaping Mergers And Acquisitions Success
- IJLLR Journal
- Mar 28
- 1 min read
Sreyashi Mukherjee, St. Xavier’s University Kolkata
Debdeep Banerjee, St. Xavier’s University Kolkata
ABSTRACT
This paper examines the critical role of legal and financial due diligence in mergers and acquisitions (M&A), emphasizing risk identification, compliance, and strategic decision-making. Legal due diligence covers corporate structure, contracts, intellectual property, and statutory provisions like the Companies Act and SEBI Act, ensuring risk mitigation and investor protection. Financial due diligence assesses financial health, tax compliance, valuation, and forecasting to ensure transparency and deal success. Challenges such as jurisdictional complexities, incomplete disclosures, and sandbagging are addressed with strategic mitigation techniques. The study highlights the evolving role of due diligence in shaping successful M&A transactions in India.
Keywords: Legal Due Diligence, Financial Due Diligence, Mergers and Acquisitions, Compliance, Risk Mitigation.