Due diligence in a business transaction refers to conducting a reasonable investigation of a proposed investment deal and of the principals offering it before the transaction is finalized to check out an investment's worthiness; generally performed by the investor's attorney and accountant.
Toward that end the professionals at WDC & Associates examine a potential target for merger, acquisition, privatization, or similar corporate finance transaction normally by a buyer and conduct a reasonable investigation focusing on material future matters.
The process is defined as follows:
- Compatibility audit
- Financial audit
- Macro-environment audit
- Legal/environmental audit
- Marketing audit
- Production audit
- Management audit
- Information systems audit
- Reconciliation audit