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 that is under fiscal distress due to its outstanding commitments and obligations and infuses 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 a 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.