due diligence

Also found in: Dictionary, Thesaurus, Medical, Legal, Acronyms, Encyclopedia, Wikipedia.

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 ?
To subscribe to Corgentum's other operational due diligence publications including its quarterly newsletter - Operational Due Diligence Insights - please sign up at: http://corgentum.
Yet we have found no convergence on what the practice of due diligence is and how this process of making sense of an investment target in a moving context can best be managed.
Sellers will believe that there is a greater certainty of closure if a buyer has taken the time to engage in quality due diligence and is selective about the issues of importance in the transaction.
In the FCPA context, the extent of due diligence may vary with whether the target does business in corrupt countries, whether the target's business involves interaction with foreign governments, and whether the target employs third parties.
The Rule 144A due diligence process can be divided into two parts, although these are closely related: documentary, or legal, due diligence, and "management" due diligence.
For us, the first round of due diligence began in late October 1992, soon after the project team first began meeting, and concluded in December of that year.
Going forward, every Castle Hall client will be able to access short and long form due diligence reporting, as well as view and search key operational metrics related to each fund in their portfolios, from a central, secure portal.
The Due Diligence module is a user-friendly, multi-functional management application providing users with features to manage the transaction process with ease.
The contract provides for a due diligence period after the signing, during which the buyer has to inspect, examine and/or investigate the premises, and all physical, environmental, financial, leasing, municipal and legal aspects thereof.
MONTREAL -- Castle Hall Alternatives, the hedge fund industry's leading provider of operational due diligence, today published its latest White Paper, "The New Standard of Operational Due Diligence: Five Principles to Guide Best Practice.
26 /PRNewswire/ -- Today, TRACE announced its newest due diligence offering: TRACEselect.
Second, the process forces lenders to offer prices long before essential underwriting and due diligence tasks are complete.