“Importance of Due Diligence in Investment Banking transactions”
3. Identifying Potential Value Drivers: During due diligence, bankers closely inspect the target company\'s operations, assets, and market conditions to find value drivers. These can include synergies, opportunities to save costs, growth potential, intellectual property, and brand value. 4. Evaluating Financial Performance: Investment banking due diligence must assess a target company\'s financial health. This process gives a clear view of where the company gets its revenue from, how its costs are set up, debt obligations, and any financial risks. It allows investors to judge the company\'s financial steadiness, growth potential, and overall attractiveness as an investment.