Due Diligence is a critical step in any financial transaction, especially during mergers, acquisitions, or investments. It involves a comprehensive review of a company’s financial health, legal standing, and business operations to verify the accuracy of information and assess potential risks. Financial due diligence focuses on analyzingbalance sheets, profit and loss statements, cash flows, tax records, liabilities, and projections to evaluate the company’s true value and sustainability. By conducting thorough due diligence, investors and businesses can make informed decisions, identify hidden risks, validate valuations, and ensure compliance with regulatory standards.
