Due diligence is an investigation of a business or person prior to signing a contract, or an act with a certain standard of care.It can be a legal obligation, but the term will more commonly apply to voluntary investigations. A common example of due diligence in various industries is the process through which a potential acquirer evaluates a target company or its assets for an acquisition.
The theory behind due diligence holds that performing this type of investigation contributes significantly to informed decision making by enhancing the amount and quality of information available to decision makers and by ensuring that this information is systematically used to deliberate in a reflexive manner on the decision at hand and all its costs, benefits, and risks.
The common procedure we adopt:
- Meeting with client to understand the objectives of the assignment
- Agreeing the client with agreed upon procedures
- Planning and execution of agreed upon procedure
- Reporting the outcomes and planning a strategy to address the objectives
- Facilitating decision making and negotiations
- Post implementation procedures.