[Cristina Girtu]

How can proper financial and legal due diligence impact the success of an M&A transaction, and what are the risks of neglecting this phase?

[Tyler Grimm]

Financial and legal due diligence are largely regulatory and compliance driven. Risks of neglecting this phase can significantly impact the business through government and regulatory fines, employment legal and customer retention challenges. This is a highly critical day-1 function.

[Niccolò]

From a legal perspective, I can confirm that omitting such an analysis can be very risky, both in terms of failing to properly assess ongoing litigation and in terms of potential litigation risks or regulatory sanctions for current or past operations. In this regard, it is crucial to check the contracts proposed to clients and those used in corporate transactions.

[Aishwarya Rai]

Proper financial and legal due diligence ensures a clear understanding of the target company’s financial health and legal standing, helping avoid hidden risks. It prevents unforeseen liabilities, legal issues, or regulatory penalties. Neglecting this phase can lead to financial losses, legal disputes, and potential transaction failure

[Roberto Ochoa]

I’ll add that both DD (as well as other DD as Tax, HR, IT, Operations) are a support to adjust the purchase price and not overpay. Also to identify one-time costs after closing (e.g. investing in new IT licencing).

[Jukka Teikari]

As mentioned above, due diligence feeds into the deal negotiations, potentially reveals issues to be fixed pre/post closing, but can also be utilised to verify assumptions and to refine an integration plan.

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