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What is Due Diligence?

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Due diligence is the level of care, judgement and investigation that can be reasonably expected in a given situation. It is commonly used to describe the responsibilities of a business to investigate material facts before signing a contract, buying an asset, making an investment, acquiring or merging with another business, employing someone or establishing a partnership. Due diligence is a central theme of corporate governance that's used to describe the responsibilities of the directors and management of a business to stakeholders. In many cases, due diligence is a legal requirement.
Overview: Due Diligence
Type
Corporate Governance
Definition
The care and judgement that can be reasonably expected in investigating material facts before committing to an agreement, strategy or investment.
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