OVERVIEW

Not to buy a pig in a poke is a suitable idiom to describe the importance of due diligence in corporate actions[1] and transactions such as mergers, acquisitions, and initial public offerings (IPO). Comprised of a series of investigatory measures, a due diligence aims to obtain relevant information on the benefits, liabilities, obstacles and risks of an intended action before making an informed decision through making enquiries into the financial and legal aspects of a target company’s business in the past, present, and future.[2]