Due Diligence

Due diligence is an exercise undertaken to ensure the correctness of everything as it appears. In an investment context, it refers to the checks carried out before making a transaction. Due diligence is carried out by a bidder before making a takeover bid, by an underwriter prior to an IPO or any other issue, by a venture capitalist before  making an investment. It implies gaining access to a company’s accounts that are not available in the public domain.

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