Due diligence (DD) is an extensive process undertaken by an acquiring firm in order to thoroughly and completely assess the target company's business, assets, capabilities, and financial performance. There may be as many as 20 or more angles of due diligence analysis.
The due diligence phase is a comprehensive assessment of the books and records of the target company prior to closing a merger or acquisition (M&A) deal.
Due diligence falls into three main categories: legal due diligence. financial due diligence. commercial due diligence.
The biggest difference is that an SPA is the sale of all shares, and an APA is the sale of selected assets. Therefore, they are both different transactions and have different procedures.