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Due diligence in mergers and acquisitions (M&A) has never been more perilous. There is simply not enough time to ascertain all the facts before signing the deal anymore. This is largely a result of the global credit crisis, which has produced a steady supply of failing companies for acquisition at bargain prices. Buyers have had to act quickly in order to take advantage of these opportunities. Consequently, the speed at which M&A deals are concluded has dropped in dramatic fashion, reducing the time available for carrying out due diligence.
According to McKinsey's January 2009 report on M&A in the downturn, the interval between the announcement and closing of ...