due diligence
/ˌduː ˈdɪlɪdʒəns/
Comprehensive appraisal before a business transaction
due diligence in a sentence
“Due diligence revealed undisclosed liabilities.”
Origin of due diligence
From Latin debita diligentia (proper care owed), from debere (to owe) + diligere (to value highly)
Related Words
fiduciary duty
Legal obligation to act in another's best financial interest
insolvency
Inability to pay debts when they become due
collateral
Assets pledged as security for a loan
capital expenditure
Funds used to acquire or upgrade physical assets
overhead
Ongoing business expenses not directly tied to production
revenue
Income generated from normal business operations