Due diligence refers to an investigation of the business to confirm all facts, or an authentication of the information
provided before signing a contract. This includes reviewing all financial records, plus anything else deemed material
Due diligence is the process of research and analysis that is performed before a potential investment, acquisition, bank loan or
business partnership, to enable the determination of any major issues or potential issues in the subject of the due diligence. The prospective investor or
acquirer must obtain all the required information to make sure that he makes a sensible investment rather than a costly mistake!
Investors carry out due diligence before buying a security from a company. Due diligence can be performed for mergers
and acquisitions, researching hedge funds and startup investments.