Due diligence is an in-depth assessment of the business, typically through questionnaires and checklists, to uncover potential problems with the business that would need to be taken into account during the business’ valuation and when drafting contracts e.g., to obtain warranties from the seller.

The level of diligence performed depends on the size of the acquisition, given the cost of engaging external professional advisors i.e., the larger the company, the more likely you are to carry out in-depth analysis. Therefore, larger companies would commission diligence covering each of the subjects listed below, but small to medium-sized companies are usually relatively straightforward so an examination should be possible in a matter of several days to a couple of weeks.