Due Diligence

"Due diligence" is a somewhat technical phrase used to describe a range of assignments, legal obligations, reports and investigations which take place in business, manufacturing and law. Its most frequently heard version is the one pertaining to business, where "duediligence" refers to the steps taken by venture capitalists before investing a round of capital in a startup, the ongoing investigation as to how the funds are being distributed, or the precautionary steps taken by a larger company in deciding to acquire a smaller company.
Sometimes the phrase is referred to as a capitalized proper noun: Due Diligence. The precise definition of "due diligence" varies between firms and organizations. In manufacturing for example, certain environmental requirements must be met, which are verified in an Environmental Site Assessment called a "due diligence report". It consists of a checklist of specifications and sections for open commentary.
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