Due Diligence is a process of analysis and research that is done before funding, acquisition, bank loan, etc. Example – Investors conduct due diligence before investing in a company. There are three types of due diligence – legal, financial, and commercial.

It is the activity of concern or investigation that a logical company or person is expected to take before starting into the agreement or contract with another party, or an act with a specific measure of care. It can be a legal responsibility, but the term will more generally apply to voluntary examinations. Due diligence supports the company verifies all considerable facts, background, legal and accounting to avoid becoming blindsided on deals. There are due diligence companies that serve as the process and there are due diligence companies in India that analyze the purpose of the project.