ULIAN-1-2024
THE ROLE OF THE DUE DILIGENCE PROCEDURE IN THE
DECISION MAKING FOR MERGERS AND ACQUISITIONS
Ecaterina ULIAN, PhD Student
Moldova State University, Republic of Moldova
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DOI: https://doi.org/10.59642/JRTMED.1.2024.03
Universal Decimal Classification: 338.26.01:330.131.7
JEL Classification: K34, H21, G34
Abstract
Despite the extensive research on mergers and acquisitions, the subject of evaluation at the pre-investment stage is in continuous evolution. In the given context, it becomes important to understand the role of the Due Diligence procedure as a valuable tool for identifying risks, assessing operational and financial efficiency or inefficiency, and other aspects that can impact the performance of the transaction. The purpose of this research is to explore the interconnection between the following three important topics: Due Diligence, risk, performance. To make the clarification of this issue, the critical analysis of the opinions of other researchers, the trend analysis of evolution, and the document analysis was applied. By examining these interconnections, the
study seeks to provide a comprehensive understanding of how Due Diligence influences the success of mergers and acquisitions transactions and offers insights for companies considering mergers and acquisitions activities, helping them to navigate potential challenges and optimize their strategies.
Keywords: mergers, acquisitions, optimization, Due Diligence
