Due Diligence & Legal
Conditions Precedent (CPs)
Pre-closing obligations that must be satisfied before the deal completes — sellers should minimize CP count and set tight deadlines to avoid deal drag.
Seller Example
Promoter of a Hyderabad pharma API manufacturer negotiates a hard 45-day CP satisfaction deadline, instead of the buyer's proposed open-ended timeline, for regulatory license transfers and key-employee retention agreements — preventing the buyer from using a slow CP process to re-trade the price closer to closing.