In mergers and acquisitions transactions, enterprise due diligence is a critical step that enables investors to comprehensively assess the risks and the true value of a target company. Conducting due diligence before the Lunar New Year offers several significant advantages.

The year-end period is when businesses finalize their accounting books and review financial statements, tax obligations, outstanding debts, and ongoing contracts. This provides investors with access to relatively complete and up-to-date information that closely reflects the company’s actual operational and legal status. Early identification of potential legal, tax, labor, or dispute-related risks allows the buyer to proactively adjust the transaction price, restructure the deal, or negotiate appropriate representations and warranties.

In addition, the pre-Lunar New Year period typically involves less competitive deal activity, making it easier to obtain documents and engage in substantive negotiations. Completing due diligence before the holiday enables investors to be fully prepared to execute transactions promptly after the New Year, thereby capturing business opportunities efficiently and strategically.