due diligence

Definitions of "due diligence"
  1. Making reasonable efforts, to the extent a reasonable person would do under similar circumstances
  2. Exercising the care that a wise person might take in the analysis and appraisal of risks governing a business deal
  3. The investigative process typically carried out by an impartial third party, like an accounting or law firm, for someone considering a business deal, such as a company takeover or merger, financial loan, or notably buying of securities, with the intention of delivering information to assess the benefits and risks
  4. The defense, used in a lawsuit, asserting that reasonable efforts were undertaken to avoid any harm or foul play
How to use "due diligence" in a sentence
  1. The investors completed their due diligence before finalizing the deal with the start-up company.
  2. Despite her due diligence, the lawyer could not find any tangible evidence against the defendant.
  3. Upon conducting due diligence, the accounting firm found discrepancies in the company's financial statements.

Provide Feedback
Browse Our Legal Dictionary
# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z