Due diligence

Due Diligence and Law

Due diligence is a process of verification, investigation, or audit of a potential deal or investment opportunity to confirm all relevant facts and financial information, and to verify anything else that was brought up during an M&A deal or investment process.  
Due diligence is completed before a deal closes to provide the buyer with an assurance of what they’re getting.
Examples of ‘due diligence’ in a sentence:
It spent a marathon two years on due diligence….
I have an open mind and our own due diligence has been reasonably satisfactory….
The company is expected to spend two months on due diligence.

Home assignments:

  1. Read the text and put questions to each paragraph.
  2. Type your questions in the form under the text.
  3. You need to write a one line summary for each color section of the text.
  4. Explain the features of legal due diligence.
  5. Describe the algorithm for conducting legal due diligence.
  6. Watch the video.
  7. Do the test.

What does the due diligence process cover and why is it necessary?
  1. Due diligence has become one of the buzzwords of the 21st century. Due diligence is a process that involves checking the validity of a position, action or status.