Within M&A, the term Due Diligence means “to act with a certain standard of care“ when performing an investigation during which the purchase object is analyzed, checked and evaluated by the potential investor as a basis for the investment decision. Principal components of Due Diligence are the economic, legal and tax situations of the target company, which can reveal potential risk factors as well as strengths and weaknesses of the company. HR Due Diligence together with a Cultural Due Diligence are both important as their emphasis lies on analyzing personnel and cultural risk factors.
Detailview for term
- name of the term: Due Diligence
- descriptions of the term:
- Type of term: definition
- Language of the term (2 char ISO code): en