due diligence


The process of investigation, performed by investors, into the details of a potential investment, such as an examination of operations and management and the verification of material facts.

Use due diligence in a sentence

As CEO of the vast company, I told my executives about the importance of due diligence when pitching our ideals to new investors.

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In doing his due diligence Donald decided not to invest in a new business because he found out the CEO had been at the helm of two other companies that went bankrupt.

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When the company filed for Chapter 11 bankruptcy, it was discovered that it's team of auditors did not exercise due diligence in their evaluation of it's financial stability.

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