Finance glossary
Due Diligence
Definition
Investigating a company thoroughly before a deal or investment.
Due diligence is the detailed review of a target financials, legal standing, operations, and risks before completing an acquisition or investment. It verifies claims and uncovers hidden liabilities, shaping the final price or whether the deal proceeds at all.
In a sentence
During due diligence, the buyer's accountants uncovered unpaid taxes that lowered the offer.
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