Due Diligence
Glossary term: Due Diligence
Due Diligence
Due Diligence is the systematic review of a company by the buyer or investor before the acquisition or investment. It serves risk analysis and verification of statements made in the sales process. Professional seller-side preparation is essential.
It typically covers financial (Financial DD – financial statements, metrics, planning), legal (Legal DD – contracts, processes, compliance) and commercial (Commercial DD – customers, competition, market) aspects. Technology companies often add a Technical DD.
Due Diligence support on the seller side minimises surprises, speeds up the process and helps address weaknesses proactively. Read our Due Diligence checklist and Vendor Due Diligence. In our Manufacturing case study we describe practice. More on sale preparation and transactions.