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Transaction Due Diligence: What it actually means?
Transaction due diligence is the in-depth review of a target business — usually financial and commercial — before acquisition or investment to confirm that performance, risks and outlook are as presented. Consultants analyse revenue quality, margins, customer concentration, working capital, capex, contracts and market position, and normalise earnings to a sustainable base. Findings feed directly into valuation, SPA negotiations, financing and the 100-day plan. This work reduces surprises post-closing and gives buyers a defensible basis for price and terms. It is a core discipline in professional M&A.
