due diligence

noun

Pronunciation: /ˌdjuː ˈdɪl.ɪ.dʒəns/

Definition

A comprehensive appraisal or investigation of a business, person, or asset undertaken before entering into a contract or transaction to identify potential risks.

Examples

• The legal team performed extensive due diligence before the merger was finalized.

• Investors often conduct due diligence to verify the accuracy of a company's financial statements.

• Failing to carry out proper due diligence can lead to significant financial losses for the buyer.

Synonyms of due diligence

Words with a similar meaning to due diligence:

• check
• investigation
• audit
• scrutiny

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