Financial Due diligence is an impartial thorough research or assessment of the target organisation / asset to understand the possible risks associated with a proposed deal. It entails assessing and examining the claims, risks, and advantages of a proposed transaction. This is accomplished by examining the origin, operation, and predicted future position of the organization or asset in question in relation to the proposed transaction.
Although using corporate due diligence services in India is not normally required by law, the premise is based on the simple concept of caveat emptor (let the buyer beware). While the investor is frequently protected by the claims and assurances made by the sellers / client at the time of deal consummation, the goal underlying due diligence is to protect the investment.