From www.cfo.com: Weak financial due diligence often leads to failures in mergers and acquisitions due to common errors made by buyers.

Key mistakes include focusing solely on EBITDA, failing to deconstruct financials for anomalies, conducting incomplete management interviews, and not adequately assessing risk profiles.

A thorough due diligence process should encompass a broad analysis of financials, risk factors, and operational aspects to ensure a successful transaction.