Due diligence in the context of mergers and acquisitions (M&A) is a comprehensive investigation and evaluation process undertaken by a prospective buyer to assess the legal, financial, operational, and commercial aspects of the target company before finalizing the deal. The purpose is to identify potential risks, liabilities, or compliance issues that could affect the value or viability of the transaction.

Legal due diligence typically includes examining contracts, regulatory licenses, pending litigation, intellectual property rights, employment obligations, and compliance with corporate laws. Financial due diligence reviews the company's assets, debts, tax history, and revenue patterns. This process helps the acquirer make an informed decision, negotiate better terms, and avoid post-acquisition surprises. In India, due diligence is especially critical due to the complex regulatory environment and plays a key role in ensuring transparency and legal soundness in M&A transactions.

In the context of mergers and acquisitions (M&A), due diligence is a thorough investigation and analysis of a target company conducted by the potential acquirer to verify information, assess risks, and ensure the deal is worthwhile. It's a crucial process that helps buyers make informed decisions and protects them from potential liabilities or unexpected issues after the acquisition.