What Is Due Diligence in a Business Acquisition?

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What Is Due Diligence in a Business Acquisition?

Due diligence is the investigation and review process that occurs before a business purchase or sale closes. Buyers often review financial records, contracts, leases, intellectual property, employment matters, regulatory compliance, litigation history, customer relationships, and tax issues. Thorough due diligence helps identify risks, confirm value, and reduce surprises after closing.

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