What is Due Diligence?

Due diligence is the expectation that the board of directors will undertake a reasonable amount of care and effort before decision-making. It provides a systematic way to protect the interests of the business and its shareholders while mitigating the risks of making a business decision.

Examples of due diligence:
– Reviewing and auditing financial records
– Conducting a background check on applicants
– Investigating a target company before a merger or acquisition