Due Diligence is a process of verification or investigation of a deal or an investment opportunity to confirm all relevant facts and information and to verify anything else that was brought up during an investment process. Due diligence is completed before a deal closes to provide the buyer with an assurance of what they’re getting. Transactions or deals that undergo Due diligence process offer maximum chances of a higher success rate.
Reasons for Due Diligence
- To confirm and verify the information that was brought up during the process.
- To identify potential defects in the deal.
- To obtain useful information.
- To make sure that the deal complies with the criteria.