Due diligence is the investigation or exercise of care that a reasonable business or person is normally expected to take before entering into an agreement or contract with another party or an act with a certain standard of care.
A merger occurs when two separate entities combine forces to create a new, joint organization. Meanwhile, an acquisition refers to the takeover of one entity by another. Mergers and acquisitions may be completed to expand a company's reach or gain market share in an attempt to create shareholder value.
Corporate debt restructuring refers to the realignment of a business entity which is under fiscal distress due to its outstanding commitments and obligations and to infuse liquidity into business operations to keep it afloat.
With rising non-performing loans (NPAs) or stressed loans of banks, the Reserve Bank of India (RBI) has come out with Strategic Debt Restructuring (SDR) scheme which will enable banks to recover their bad loans by converting the advances into equity and taking control of distressed companies.