Meaning & use
due diligence
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Reasonable steps taken by a person or organization to investigate and verify facts before entering into an agreement or making a decision, especially in business or legal matters.
See it in a sentence
The investors conducted extensive due diligence before acquiring the startup.
Failing to perform due diligence on the contractor cost the company dearly.
A note on using this word
Due diligence is standard practice in mergers, acquisitions, and real estate transactions, referring to the careful research expected before a deal closes.
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