Legal Due Diligence · glossary

Due diligence (DD)

The buyer's investigation of a company before it agrees to buy it. Its lawyers read the documents, ask the seller questions and search public registers. What they find can change the price, the contract or the decision to buy. Chapter 1

Explained in Chapter 1, What Due Diligence Is For, of Legal Due Diligence.

Also explained in M&A Foundations.

How it comes up, in Chapter 1
Before a company buys another, its lawyers read that company's documents, ask the seller questions and search public registers. That investigation is due diligence, or DD, and its report can change the deal before it is signed. This workbook follows one review on one deal. You are a junior lawyer at Blackwood & Steel LLP, the law firm acting for the buyer.
Read Chapter 1, What Due Diligence Is For →

Chapter 1 and this glossary are open to everyone; the whole edition is free to read with a free account until 31 January, and it stays open to an account opened by then.

Related terms

Where this term lives

This term is part of one complete fictional deal, with every document attached and a test after every chapter. Open Legal Due Diligence → · All terms A–Z →