Due Diligence & Legal
Conditions Precedent (CPs)
Specific pre-closing obligations — regulatory approvals, third-party consents, key employee retention — that must be satisfied before the transaction can legally close.
Buyer Example
Buyer of a Hyderabad pharma API manufacturer makes closing conditional on (a) drug license transfer approval, (b) signed retention agreements from three named key scientists, and (c) landlord consent for lease assignment — the deal cannot close, and the deposit is refundable, if any CP is unmet within 60 days.