Due Diligence

A business due diligence is usually performed prior to the purchase of a company or investment in a company by the acquirer or investor ("Buyer"). It is the responsibility of the seller of the business or shares ("Seller") to provide the documents and information necessary for performing a due diligence on the company to the buyer.

A due diligence helps the buyer take an informed investment decision and mitigate risks associated with a business purchase transaction. Both parties usually enter into a non-disclosure agreement prior to starting a business due diligence as sensitive financial, operational, legal and regulatory information would be divulged to the buyer during the due diligence process..