Glossary
Due Diligence
The investigation of a business or deal before a transaction closes.
Definition
Due diligence is the systematic investigation of a target business, asset, or investment before a transaction — covering financial, commercial, operational, legal, and increasingly cultural dimensions — to surface the real value and the real risk before commitment. It is the foundation of sound M&A and capital decisions.
Context
Strong due diligence reads what spreadsheets miss: the quality of customer relationships, the health of operations, and the culture of the target. Operator-led diligence, conducted by people who have actually run businesses in the sector, catches risks and opportunities that purely financial review overlooks.