- 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 lawyers when a company is about to acquire another. It involves verifying a company's liabilities and financial performance. London Stock Exchange Glossary
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due diligence UK US noun [U] LAW► the action that is considered reasonable for people to take in order to keep themselves or others and their property safe: exercise/demonstrate due diligence »People have to exercise due diligence and watch what's being bought on their credit cards.
► ACCOUNTING the detailed examination of a company and its financial records, done before becoming involved in a business arrangement with it, such as buying it or selling its shares to investors: »The buyout group's due diligence is expected to run till late March.
carry out/conduct/perform due diligence »We had the opportunity to do due diligence on the books and we think $518 is a fair offer.
»due diligence exercise/investigation/process
»due diligence report/review/assessment
► TRANSPORT the duty that the owner of a ship has to protect the people and goods on the ship from harm: »The owner must exercise due diligence to provide a seaworthy ship at the commencement of the voyage.
Financial and business terms. 2012.