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In Mergers and Acquisitions, one of the most critical steps is Due Diligence. Simply put, due diligence is a detailed and professional investigation carried out by the purchaser before finalising the deal. The acquiring company appoints expert professionals to thoroughly examine the seller, also known as the acquiree or vendor, to ensure that everything presented is accurate and genuine.
This process involves a complete review of the company’s financial information, including revenue, sales, purchases, expenses, and taxes. In addition to financial data, the legal structure, compliances, and statutory records are carefully examined to ensure there is no fraud, manipulation, or misrepresentation (ghaplabazi). The objective is to confirm that the company’s records and internal structure truly reflect its actual position.
Due Diligence goes beyond paperwork. Professionals physically visit the company’s premises and factories to verify whether the claimed production capacity actually exists and whether the reported turnover is realistically achievable. They also review tax compliance, ownership structure, promoters, and shareholder details to ensure transparency at every level.
This exercise is essential because no buyer is willing to pay a significant consideration without verifying the truth behind the numbers. Initial valuations may be based on market data or information provided by the seller, but Due Diligence ensures that the acquiring company is not investing in a misleading or fraudulent business. Typically, such in-depth reviews are conducted by reputed professional and consulting firms, ensuring reliability and confidence in the transaction.
These insights are drawn from video lectures by Sudarshan Agrawal Sir on Due Diligence in Mergers and Acquisitions, where he explains the practical aspects of financial analysis, compliance checks, risk assessment, and business evaluation in a clear and structured manner. The lectures focus on real-world case studies and industry-oriented approaches that help commerce and finance students understand how due diligence is actually performed in professional environments such as CA firms, investment banking, and corporate finance roles.
Through these sessions, learners gain practical exposure to handling financial statements, audit findings, and legal documentation, enabling them to bridge the gap between theoretical concepts and real M&A due diligence assignments. The teaching approach emphasizes clarity, accuracy, and application, helping students build confidence in evaluating businesses during mergers and acquisitions.
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Aswini Bajaj
HEY ! IT’S ME
I’m a Commerce graduate from St. Xavier’s College, Kolkata and have completed CA (Rank holder),
CFA(USA),
FRM(USA), CAIA(USA) and CS. At present, I am a visiting faculty at St. Xavier’s College, NSE,
BSE; B-Schools
like iLead, BIBS along with several other institutes; am a full time trainer for CFA, FRM and
SFM – CA
Final. Provide trainings at organizations like Tata Interactive Systems, Volvo-Eicher(VECV),
Genpact, AIITA,
EIRC-ICAI etc. on Finance and Advance Excel.
I have been teaching CFA, FRM and Capital Market courses; conducting Excel workshops, etc. for
the past 3
years in Mumbai, Delhi and Kolkata. Have conducted Career Seminars for St. Xavier’s School and
College, Shri
Shikshayatan, The Heritage School, Loreto, etc. Have worked at Cairn India in the MIS, Budgeting
and
Forecasting profile along with articleship experience of 3 years prior to that.
