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 ?
Due dilligence is being rushed through in order to free up cash for Moyes before the August 31 transfer deadline.
During that time the consortium will conduct a second due dilligence process and negotiate a social package with the trade unions.
59 billion, collapsed during due dilligence and the demerger proceeded.
In the first phase of Semen Gresik's privatization, Placefields Investment NV --which is 100% owned by Cemex CA de CV-- was finally declared as the best bidder by the Office of the Minister of State for the Empowerment of State Enterprises following the completion early in May 1998 of the due dilligence process.
The price has been settled but was undisclosed to beneficiaries pending due dilligence and a final contract.
Make sure he has done his homework and due dilligence on anything he might be trying to get you to invest in.
Since November, as a result of due dilligence, the Los Cumani and Selwyn royalties have been excluded from the portfolio and the purchase price has been decreased to US$1,230,000 to reflect these changes.
Business takeaway: Do your due dilligence before embarking on a partnership with a stranger.
As the co-op figures out its future, due dilligence is important, as said by Arleen Boyd, Beartooth board member and representative on the Southern board.
The governing body has been criticised for failing to carry out due dilligence on Craig Whyte before he bought the Ibrox outfit.
The bank's deputy CEO, Herbert Moos, then stated that VTB would carry out the due dilligence procedure and decide on the price in the first quarter of 2011.