What is Due Diligence?
A definition of Due Diligence
“Due diligence is a comprehensive appraisal of a business or individual undertaken to establish their assets and liabilities and evaluate their commercial potential.”

Business Glossary > What is Due Diligence?
Examples of Due Diligence in a Sentence:
Investors are conducting due diligence before purchasing the company.
Thorough due diligence is essential in any merger or acquisition.
They hired a firm to perform due diligence on the proposed acquisition.
Why is Due Diligence Important in Business?
Performing due diligence is critical in making informed investment decisions. It helps investors and companies understand potential risks and benefits, evaluate the true value of an asset, and make well-grounded judgments based on verified information.
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Associated Terms
Here are some associated business terms and synonyms for “Due Diligence”:
- Background Check
- Risk Assessment
- Investigation
Apple Due Diligence
In its acquisition of Beats Electronics in 2014, Apple undertook extensive due diligence to assess the financials, technology, and market position of Beats. This ensured that the acquisition aligned with Apple’s strategic goals and minimized integration risks.
Final Notes on Due Diligence
When conducting due diligence, consider the company’s financial health, market position, legal obligations, and potential liabilities. Comprehensive due diligence helps mitigate risks and supports sound business decisions.
This has been a definition of Due Diligence meaning.
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