due diligence


due diligence
due diligence n
1: such diligence as a reasonable person under the same circumstances would use: use of reasonable but not necessarily exhaustive efforts – called also reasonable diligence;
Due diligence is used most often in connection with the performance of a professional or fiduciary duty, or with regard to proceeding with a court action. Due care is used more often in connection with general tort actions.
2 a: the care that a prudent person might be expected to exercise in the examination and evaluation of risks affecting a business transaction
b: the process of investigation carried on usu. by a disinterested third party (as an accounting or law firm) on behalf of a party contemplating a business transaction (as a corporate acquisition or merger, loan of finances, or esp. purchase of securities) for the purpose of providing information with which to evaluate the advantages and risks involved
the greatest exposure...for failure to conduct adequate due diligence arises in the context of public offerings of securities — G. M. Lawrence
c: the defense (as to a lawsuit) that due diligence was conducted

Merriam-Webster’s Dictionary of Law. . 1996.

due diligence
The process by which a purchaser of or an investor in a company or business investigates the records of the target to support its value and find out whether there are "skeletons in the cupboard". Professional reports from accountants and solicitors may be included. The process is covered by confidentiality undertakings and supported by warranties.

Easyform Glossary of Law Terms. — UK law terms.


due diligence
Care or attention to a matter that is sufficient enough to avoid a claim of negligence, though not necessarily exhaustive.
Category: Business, LLCs & Corporations → Buying or Selling a Business

Nolo’s Plain-English Law Dictionary. . 2009.

due diligence
1) The purpose of due diligence is to uncover and understand all liabilities of the business and check what the owners are saying is true, eg, nature and condition of the assets, no major disputes. Information may be made available through an information memorandum, seller's response to the buyer's due diligence questionnaire, a data room and/or accountants and other specialist reports on the company.
2) The process by which a buyer of or an investor in a company or business investigates the records of the target to support its value and find out whether there are matters on which it requires further information or which it should use as a platform to renegotiate the price. In the acquisition of a business, reports from accountants and legal advisers are usually prepared to record the findings of the legal and financial due diligence process. The due diligence process is supported by warranties (warranty) and indemnities (indemnity) in the acquisition agreement.
+ Due Diligence
USA
This term has a number of meanings. In the context of:
• Securities and capital markets, a fact-finding process undertaken by the working group to verify the accuracy and completeness of the registration statement or other offering document (such as a private placement memorandum)). See Practice Note, Due Diligence: Securities Offering (www.practicallaw.com/4-380-7917).
• Mergers and acquisitions or finance, the act of investigating a business entity, person or party in preparation for a business or loan transaction. Due diligence usually includes reviewing documents, talking to management, visiting a location and performing analyses.
Related links
due diligence

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

Look at other dictionaries:

  • Due Diligence — (DD), bekannt als „Sorgfaltspflicht“ (z. B. von Banken), bezeichnet die „gebotene Sorgfalt“, mit der beim Kauf bzw. Verkauf von Unternehmensbeteiligungen oder Immobilien oder einem Börsengang das Objekt im Vorfeld der Akquisition oder des… …   Deutsch Wikipedia

  • Due-Diligence — Le due diligence est un concept anglo saxon (littéralement: diligence raisonnable ) qui signifie que le sujet doit travailler à se prémunir lui même contre tout élément négatif d une opération qui peut être évité. Due diligence s écrit sans trait …   Wikipédia en Français

  • Due Diligence — Due Di|li|gence [dju: dɪlɪd̮ʒəns ], die; , s [engl. due diligence, eigtl. = gebührende Sorgfalt, aus: due = gebührend, angemessen (< mengl. due = zahlbar < afrz. deu = geschuldet, zu lat. debere, ↑ Debitor) u. diligence = Eifer, Fleiß, über …   Universal-Lexikon

  • due diligence — /djuˈdilidʒens, ingl. ˈdjuːˌdɪlɪdʒens/ [loc. ingl., propr. «dovuta (due) diligenza (diligence)»] loc. sost. f. inv. (econ.) verifica del valore (di una società) □ (banca) valutazione del credito …   Sinonimi e Contrari. Terza edizione

  • due diligence — (izg. djȕ dìlidžens) m DEFINICIJA ekon. naziv za ispitivanje svih relevantnih činilaca za novu emisiju vrijednosnih papira ETIMOLOGIJA engl …   Hrvatski jezični portal

  • Due diligence — For other uses, see Diligence (disambiguation). Companies law …   Wikipedia

  • due diligence — An internal audit ( internal auditor) of a target firm by an acquiring firm. offers are often made contingent upon resolution of the due diligence process. Bloomberg Financial Dictionary Due diligence is a process carried out by accountants and… …   Financial and business terms

  • Due diligence — Les due diligences sont l ensemble des vérifications qu un éventuel acquéreur va réaliser afin de se faire une idée précise de la situation de l entreprise. Le due diligence est un concept anglo saxon (littéralement: diligence raisonnable ) qui… …   Wikipédia en Français

  • Due Diligence - DD — 1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to a sale. 2. Generally, due diligence refers to the care a reasonable person should take before entering into an agreement or a …   Investment dictionary

  • Due diligence — Аудит Виды аудита Внутренний аудит Внешний аудит Налоговый аудит Экологический аудит Социальный аудит Пожарный …   Википедия


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