Due Diligence

Due diligence is an investigation of the business or person before signing a long term contract, or an act using a certain standard regarding care. A common example of due diligence in various industries is the process through that potential acquirer evaluates a target corporation or its assets on an acquisition. The theory behind due diligence that performing this kind of investigation contributes substantially to informed decision making by enhancing the total and quality of information accessible to decision makers and by making certain this information is systematically utilized to deliberate in a reflexive manner in the decision and all their costs, benefits along with risks.