Due Diligence
The thorough investigation and analysis of a business, property, or legal matter before entering into a transaction or agreement.
Encyclopedia entry: Due Diligence
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due diligence
Due diligence is the level of reasonable care or attention expected to avoid liability , especially in legal and financial matters. Due diligence commonly involves reviewing financial records and other relevant documentation such as before making a securities offering or a business acquisition .
[Last reviewed in July of 2025 by the Wex Definitions Team
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Encyclopedia content from Cornell LII Wex (CC-BY-NC-SA 2.5).
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