Due Diligence


The process potential investors use to investigate and evaluate a business venture before committing funds. Due diligence can also refer to the process used by a social enterprise to assess the viability of ideas for earned income strategies or a social sector business. See market research and feasibility studies.




1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to a sale.

2. Generally, due diligence refers to the care a reasonable person should take before entering into an agreement or a transaction with another party.



« Back to Glossary Index
Sites DOT MIISThe Middlebury Institute site network.