"Global M&A activities are currently reaching new highs. Economies continue to perform well, cost of debt is low and the capital reserves of huge corporations are full, while increasingly powerful markets such as China and the US are once more initiating pioneering acquisitions. Strategic deals, with a stronger focus on business, or their realignment have become the center of attention. In addition, further financial and economic challenges are expected in the future which will force many companies to meet their capital requirements through other forms of financing to avoid the risk of short funding constraints or insufficient liquidity. Consequently, the demand for Private Equity (PE) remains high.
The value of due diligence services for M&A transactions cannot be overstated. Due diligence not only provides the information required to reveal potential financial, legal, IT, and regulatory risks, but also assures that the right investment is made at the right price.
Throughout the due diligence process, the primary goal of management is to gather as much relevant information as possible in order to ensure a transparent understanding of the target. If done correctly, due diligence helps to reduce or eliminate unpleasant surprises after close."