What is due diligence & why is it important?

An ongoing due diligence is required for all your business partners, vendors, buyers & sellers to ensure compliance. It is also a good idea to assess your target company, prospects before signing a sales contract to avoid issues in future. How to Perform Due Diligence? For instance, assume you are purchasing a business in a suitable location.

How do you plan a due diligence program?

Due diligence planning should start with the due diligence program management office. It consists of top managers and senior executives who oversee the due diligence phases from start to finish. Many companies take a two-way approach to due diligence governance, assigning buy-side and sell-side executives to the DD management office.

Who performs due diligence?

Due diligence is performed by equity research analysts, fund managers, broker-dealers, individual investors, and companies that are considering acquiring other companies. Due diligence by individual investors is voluntary. However, broker-dealers are legally obligated to conduct due diligence on a security before selling it.