What is Due Diligence? Due diligence is the process of detailed checks which are carried out before parties enter into a legally binding contract or transaction, such as buying a business. Thorough Due Diligence should help the buyer glean key information about the target business or project, which will help to flag any potential risks or pitfalls and provide the confidence required to make the right decision to pursue the transaction. The importance of Due Diligence Due diligence stems from the Latin proverb ‘caveat emptor’, which loosely translated means ‘buyer beware’. There is no law which compels a seller to disclose flaws or issues with a business or property, however, valuable information can be obtained by the buyers by encouraging sellers to engage with the due diligence process. In respect of the purchase of a business, the added value in … Continue reading →