A Critical Study on Strategic Due Diligence and Corporate Risk Governance in Modern Mergers and Acquisitions in India

Mergers and acquisitions have increasingly emerged as important instruments for corporate expansion, restructuring, market consolidation, and strategic growth within India’s evolving business environment. As acquisition transactions have proliferated in both number and size, the risk assessment mechanisms have grown in importance due to the size and complexity of the transactions, which has concurrently exposed businesses to a growing number of financial, operational, regulatory, valuation and integration risks. Recent developments underscore the significance of this sector, as India saw deal values rise significantly during 2024, with total deal value of around USD 112 billion, marking a notable surge in acquisition activity and market consolidation. Additionally, India's deal value for M&A transactions rose from USD 106.3 billion in 2024 to USD 123.8 billion in 2025, highlighting the ongoing significance of mergers and acquisitions in the Indian economy. The present study attempts to critically evaluate the correlation between strategic due diligence and corporate risk governance in the present scenario of the mergers and acquisitions deal in India. The research examines the concept of strategic due diligence as a process that goes beyond legal and financial due diligence and encompasses a wider risk identification, transaction evaluation and decision-making process. Second, it explores corporate risk governance structures and their role in the management of risks associated with acquisitions with the different stages of the acquisition process. The study employs a doctrinal and analytical approach to research, utilizing secondary sources such as literature, regulations, reports, and scholarly resources, to assess how far a doctrine of associated mechanisms of risk assessment affects the speed and effectiveness of transactions, as well as acquisition results. The research suggests that a “corporate risk governance” shouldn't co-exist with a “research on due diligence efforts,” but instead be “tightly coupled in order to strengthen transaction planning, development of that reduction and long-term acquisition success.” This study plays a role in the process of formulating an integrated perspective on the risk management process in the present-day framework of M&A activities in India.