Imagine working as a lawyer for a VC or private equity investor which is acquiring another company. Before entering into the transaction, the investor will require a ‘due diligence’ to be conducted, which includes a legal and a financial due diligence. The purpose of the legal due diligence is to identify legal risks in the business model – law firms typically charge huge sums for this exercise. It can impact the terms of the investment, lead to incorporation of additional clauses in documentation and even affect the valuation of the business in some cases (if significant risks are identified). Learn about the components of legal due diligence from Ketan Mukhija, General Counsel of SREI Infrastructure Finance Limited, who has earlier worked in the international law firm Herbert Smith (he worked on Tata’s acquisition of Jaguar Land Rover) and with Luthra and as a partner at Vaish Associates.