The critical importance of intellectual property (IP) due diligence within mergers and acquisitions (M&A) is greatly magnified in business segments that possess high amounts of innovation along with significant intangible assets that drive value. In light of the fact that the amount of value attributed to corporate entities is increasingly comprised of the intangible asset classes of patents, trademarks, copyrights, and trade secrets, a systematic identification, valuation and protection of intangible assets are a prerequisite for successful transactions. This research paper explores how IP due diligence serves multiple functions over the course of the M&A lifecycle, from the development of an asset inventory, verification of ownership and litigation analysis through to regulatory compliance and integration of the acquired company. This study highlights several high-profile acquisitions such as Google’s purchase of Motorola Mobility, Adobe’s acquisition of Figma, the acquisition of Alcatel-Lucent by Nokia, and Hewlett-Packard’s acquisition of Autonomy and demonstrates how a comprehensive evaluation of IP will identify hidden liabilities, strengthen a negotiating position and enhance overall strategic and financial returns. The paper also offers a collection of best practices and frequent pitfalls, comprising a practical framework that can be employed by legal professionals, corporate counsel and investors involved in transactions with a heavy reliance on innovation.