A possible investment is audited or looked into to check details that could directly affect a buyer's choice to merge with it or make a purchase. Prior to concluding a financial transaction or agreement with another party, merger and acquisition due diligence is used to check if all the facts are in agreement. The full understanding of a company's obligations, including its debts, leases, distribution agreements, pending and potential lawsuits, long-term customer agreements, warranties, compensation agreements, employment contracts, and similar business components, is typically included in due diligence when a company is acquired.