due diligencedue diligence
- Doing extensive research on a home including a home inspection before buying it in order to make sure the house is a good investment is an example of due diligence.
- An investor researching a company before investing is an example of due diligence.
- A business considering a merger with another company, making sure that the company they are considering merging with is financially sound, is an example of due diligence.
- the degree of care that is reasonably to be expected or that is legally required, esp. of persons giving professional advice
- an assessing, evaluating, etc. conducted with prudent or requisite care
due diligence - Computer Definition
due diligence - Investment & Finance Definition
The amount of reasonable investigation that must be made by a prudent person to determine whether an investment or business arrangement makes sense and to determine whether it is likely that the information he or she has contains omissions or misstatements. Due diligence involves looking through public documents related to a company and talking with people in the industry who have knowledge of the company’s performance.