Skip to content

Glossary

Due diligence

Verifying that what you are buying is what the seller says it is.

For a business: bank statements against reported revenue, customer concentration, supplier contracts, whether the profit survives the owner leaving. For a property: structure, title, actual rents received rather than advertised.

The rule of thumb is that anything a seller resists showing you is the thing you most need to see. Time spent here is the cheapest risk reduction available anywhere.

Related terms