Merger and acquisition (M&A) due diligence is the process of investigating a target company before entering into a merger or acquisition agreement. It typically involves a thorough review of the target company's financial, operational, and legal affairs to identify any potential issues or risks that could affect the value of the company or the viability of the deal.

The purpose of M&A due diligence is to provide the buyer with a clear understanding of the target company's strengths and weaknesses, and to help the buyer make an informed decision about whether to proceed with the deal. It is an important step in the M&A process, as it helps to protect the buyer from potential unknown liabilities or problems that could arise after the deal has been completed.

M&A due diligence typically involves a number of different activities, including reviewing financial statements and other financial documents, analyzing the target company's operations and market position, and reviewing legal documents such as contracts and intellectual property agreements. It may also involve interviews with key personnel, site visits, and other forms of investigation.

M&A due diligence is typically led by a team of experts, including financial analysts, lawyers, and industry experts, who work together to evaluate the target company and identify any potential risks or issues that could impact the deal. The results of the due diligence process are typically presented in a due diligence report, which outlines the findings and recommendations of the investigation.

Dealmaking is back on the table for private equity firms focused on Asia. After the biggest global health emergency in more than a century put an almost complete stop to in-person site visits and meetings, executives are once again seeking opportunities where they can see potential for transformation and profitable disposal in the future.

Getting products from design and manufacturing and into markets along secure distribution routes will always be a key requirement for companies no matter what economic and geopolitical storms they may have to adjust to. This focus on distribution is heightening the interest in deals for companies that make supply chains work.

For example, according to research from global law firm K&L Gates, there were 53 PE deals involving logistics and supply chain in the U.S. from the beginning of the year up to August 2022 worth a total of $20 billion. This compares to $7.9 billion in 2020, and $5.1 billion in 2019.