Due Diligence Meaning or definition of due diligence: the concept of due diligence enshrined in German law refers to the exercise of reasonable care in the course of business. A due diligence check involves careful investigation of the economic, legal, fiscal and financial circumstances of a business or individual. This covers aspects such as sales figures, shareholder structure and possible links with forms of economic crime such as corruption and tax evasion. A check of this sort is necessary as soon as a company initiates relationships with business partners or plans to buy up another company or property or make investments in real estate. According to Cambridge Dictionary, Due diligence meaning is: “The detailed examination of a company and its financial records, business transactions, done before becoming involved in a business arrangement with it.”
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