Corporate mergers and acquisitions (M&A) are fraught with risks. Buyers need to be very careful of what they are getting into, what obligations they are assuming, whether the targeted company has any financial non-disclosures or liabilities, IP related issues or litigations against it. Due diligence is the process of hiring competent consultants who will assist the buyer company in assessing the strengths and weaknesses of the targeted company. These consultants need to be proficient in varied domains like finance, laws and IP.Over the last few years India has seen a spate of Mergers and Acquisition deals in India and elsewhere. This trend is likely to be continuously on the upswing in the future. Merger and acquisition (M&A) activity can be an important component for a company’s growth strategy. A successful acquisition can help a company make a quantum leap in terms of market presence, filling in gaps in a company's product or service portfolio, and improving profitability and other performance metrics. On the other hand, in case the M&A transaction doesn’t perform as expected, or results in negative surprises, it can cause serious damage to both the companies.
LCPL has a team of professionals that conducts a detailed Due Diligence before any M&A deal. There are a lot of areas that can be investigated during a due diligence. Some of the areas that we focus on during the due diligence of any company include Financial due diligence, Operational, Legal due diligence, Tax Compliances and HR. Our precise reports enable potential buyers to accurately assess the exact position of the target company, so that there are no nasty surprises later on.