A legally binding process during which a potential buyer evaluates the assets and liabilities of a company
research and analysis of a company or organization done in preparation for a business transaction (as a corporate merger or purchase of securities)
(Kanun) Reasonable steps taken by a person in order to avoid committing an offence, especially in buying or selling something
(1) Procedures performed by underwriters in connection with the issuance of a SECURITIES EXCHANGE COMMISSION (SEC) registration statement These procedures involve questions concerning the company and its business, products, competitive position, recent financial and other developments and prospects Also performed by others in connection with acquisitions and other transactions (2) Requirement found in ethical codes that the person governed by the ethical rules exercise professional care in conducting his or her activities Top of Page
Due diligence, in terms of environmental responsibilities, means taking reasonable care to minimise environmental harm A lack of due diligence leading to such harm may result in charges of negligence under the Environmental Offences and Penalties Act 1989
The process of investigation, performed by investors or their representatives, into the details of a company and its activities, such as an examination of operations and management and the verification of market size and other material facts
The process of checking the accuracy of information contained in a company public statement, such as a prospectus, before recommending that company to others Is also the act of one company investigating another company before buying its shares
in the conventional sense, is an in-depth analysis of the financial and operational conditions of a company targeted for investment, merger, or acquisition It may be as detailed as an accounting audit, but it is much broader in scope because the operational condition and efficiency of the target's assets are investigated as well Due diligence is used to ascertain the economic values and results of operations and to express them in financial terms The objective is to find, to identify, and to estimate the impact of purchase price or investment conditions
The analysis and appraisal of a business in preparation for a flotation or venture capital investment Investors have a right to expect that these investigations are carried out thoroughly
The effort necessary to bring an intent to appropriate into fruition by the actual application of water to the beneficial use intended Due diligence does not require unusual effort or expenditures, but only such constancy in the pursuit of the undertaking as is usual with those in like enterprises Actions which demonstrate a good faith intention to complete the undertaking within a reasonable time (Rice (1991))
Refers to the task of carefully confirming all critical assumptions and facts presented by a borrower This includes verifying sources of income, accuracy of financial statements, value of assets that will serve as collateral, the tax status of the borrower and any other material facts presented by the borrower
The analytical assessment of the merits, prices and overall potential of an investment opportunity with the main intent to provide financing The process a prospective investor will go through to decide if they will lend your company money Due Diligence is commonly performed prior to your company going public
A process of inspection that a venture capital or other private equity firm carries out before closing on a deal Venture capitalists, for example, might review a companys accounting practices and managerial structure
A The reasonable investigation performed by the Underwriter and mandated by the SEC to protect the investing public who may fairly rely on an Underwriter's conduct B The reasonable investigation performed by the Acquirer prior to the purchase of a business
As part of the process of taking a company public, the investment bankers and lawyers for the underwriters conduct an in-depth examination of the proposed IPO They speak with management about the company's prospects, strategy, competitors and financial statements Information that is material to the company's prospects must be disclosed in the prospectus
A process undertaken by potential investors -- individuals or institutions -- to analyze and assess the desirability, value, and potential of an investment opportunity
the process of checking and verifying information contained in a statement (eg a prospectus) to be released to the public prior to the registration of that statement
A legal term describing a thorough effort to intercept potential problems before they occur, such as preparing for Y2K or monitoring for fraudulent claims In IT, the process includes documented evidence that information systems are regularly assessed, updated and monitored for data integrity and security Due diligence will be intrinsically involved in the privacy and security regulations under HIPAA, via audit trails, user authentication and access controls
The process whereby an investor investigates the attractiveness of an opportunity, assesses the quality of the management team, and assesses the key risks associated with and opportunity Due diligence starts on initial inspection of an opportunity and ends when the investment is in the investee's bank
A thorough investigation of a company that is preparing to go public, undertaken by the company's underwriter and accounting firm
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الواصلة
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