due diligence

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Due diligence

An internal audit of a target firm by an acquiring firm. Offers are often made contingent upon resolution of the due diligence process.

Due Diligence

The investigation of an asset, investment, or anything else to ensure that everything is as it seems. Due diligence helps a buyer or investor make sure that there are no unexpected problems with the asset or investment and that he/she does not overpay. Due diligence can be a complex and formalized process in the acquisition of a company. Even when buying a house, for example, due diligence involves time consuming and at times expensive endeavors, like a home inspection. However, due diligence is seen as a necessary part of doing business or buying an asset. See also: 10-K, Due diligence meeting.

due diligence

The process of investigating all facts,conditions,rules,laws,regulations,financial considerations, or any other such matters as would affect one's decision to purchase property. The various types of investigations as would comprise due diligence will vary from property to property. With the purchase of a home, it might include nothing more than a home inspection, termite report, and a review of any restrictive covenants.When purchasing raw land for development, it could include zoning issues, possible environmental contamination, surveys, soil compaction studies, analysis of cost to develop versus value when completed, and so on as far as the imagination can go.

References in periodicals archive ?
That said we are exploring the possibility of carrying out due dilligence.
The shock takeover scuppers rival interest shown by investors The Belgravia Group, who had been going through a similar due dilligence process, without making a firm bid for the club.
1) You show me round the North Pole 2) I show you my money 3) Independently-appointed elves conduct due dilligence 4) My detailed offer arrives Dec 24 5) I slip into the red and white and get cracking
Although the two parties have still not agreed a price for the club, it is understood that the process of due dilligence has begun.
Jorgensen has provided expertise to banks, investor groups, and developers on risk assessment and due dilligence for wind farm developments.
There is a considerable amount of work on the books awaiting a start time which will revieled during the due dilligence period.
In September, a due dilligence will be carried out.
Always do your own due dilligence before investing in any stock mentioned in this newsletter.
In the private sector, a demonstration of partnership working would be considered a bare minimum for due dilligence.
SecureBiz applications are independently verified using a rigorous due dilligence process.