Series 79: Due Diligence In Mergers And Acquisitions

Taken from our Series 79 Top-off Online Guide

Due Diligence in Mergers and Acquisitions

The goal of due diligence in mergers and acquisitions is the same as the goal in securities offerings: full understanding of a company and its business. The types of information reviewed, and to some extent the process of review, is similar in both contexts, but the ultimate purpose—facilitating the sale or purchase of a company—is different.

Within M&A, due diligence tasks vary depending on whether the investment bank performing the due diligence is advising the seller or the buyer.

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M&A Due Diligence—Sell Side and Buy Side

Sell Side

Buy Side

Purposes: Understand business being sold; anticipate questions of potential buyers

Tasks:

  • Performs business and financial due diligence on the seller
  • Helps compile due diligence materials for potential buyers and assists buyers with due diligence process
  • Sets up data room/document roo