Due Diligence (DD)

Due diligence (DD) is the process of thoroughly evaluating an investment opportunity prior to committing capital. It involves investigating and assessing the details of a potential acquisition target or investment. In private equity and venture capital, DD aims to uncover any material risks, issues, or value drivers. A DD assesses financial health, legal liabilities, operations, management, products, market position, growth potential, and more. DD is performed before finalizing an investment to ensure the valuation and terms reflect the company's true value and prospects. High quality DD helps minimize risks and prevent overpayment. It informs deal structure and planning post-acquisition. Rigorous due diligence is a hallmark of successful private equity and venture capital firms.

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