Due diligence is a structured process used to assess and reduce risk before making a significant business or investment decision.
It typically involves a thorough review of financial records, legal documents, operational practices, and other relevant information to ensure accuracy and transparency. This process is commonly undertaken before transactions such as purchasing a business, entering a partnership, or investing in a company. Due diligence helps identify potential liabilities, confirm the value of assets, and uncover any hidden issues that could affect the outcome of the deal.
By conducting due diligence, individuals and organisations can make more informed, confident decisions and protect their interests in complex transactions.