“Due diligence” is an investigation of a business or person prior to proceeding with a transaction or entering into a commercial relationship. The primary purpose of due diligence is to place the investigator in a position where they are able to rely on their findings in order to make an informed decision, having carefully considered any implications regarding costs, benefits and risks. In some circumstances, due diligence can be a legal obligation but the term more commonly applies to voluntary investigations.
An individual may be in the fortunate position of having access to material that will assist with their investigations. However, it is more common that the investigator will be ‘starting from scratch’ with little information available to them. In those instances where information is available, the investigator may not have the experience or knowledge to utilise that information to its full potential. Where this is the case, due diligence is arguably more than merely ‘a waste of time’ as reliance on information that has been misinterpreted could prove detrimental to the user.
Why take unnecessary risks in an important business transaction before knowing who you are dealing with?
Why waste legal costs in pursuing debtors who have little or no money or assets?
If you have any queries regarding due diligence or would like assistance with a due diligence investigation, please do not hesitate to contact a member of the Dunion & Co. team on 01782 828 733.