Due diligence in mergers and acquisitions of capital companies

Mergers and acquisitions are among the methods used by companies to enable them to cope with the increasingly competitive environment. With such transactions, a company can achieve different objectives such as growth, increasing profits and market share, or entering new sectors. Despite the benefits, these transactions also entail high risks. Companies benefit from due diligence to protect themselves from the risks associated with mergers and acquisitions. Due diligence is the activity of examining and analyzing the target company in different areas such as finance, law, tax, and trade. Thus, it becomes possible for the buyer company to make its merger and acquisition decision in the light of the necessary information and protect its interests. In this study, due diligence will be discussed in the context of mergers and acquisitions.