Definition Due Diligence. Description.
Due Diligence is the process whereby an investing party investigates,
analyses, and evaluates an intended major investment, transaction, takeover,
or business partnership prior to committing capital to it. The purpose of
a due diligence investigation is to determine whether the investment makes
financial and/or strategic sense and to check if the information about the
investment that is available is correct and complete. Also, it is a way of
preventing unnecessary harm to either party involved in a transaction.
Some typical areas for due diligence include the key risks
associated with the opportunity, quality of the management team, assets, liabilities
and solvency, a determination of the purchase price, press and SEC filings,
regulatory and licensing problems, liens and judgments, conflicts of interest,
civil and criminal litigation matters, etc.
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Role of Human Resources in Due Diligence
"I strongly feel that due diligence will not be successful until a comprehensive review is made on the following HR aspects:
1. HR policy
2. Agreement with unions
3. Promotion and increment policy
4. Background of men at the helm of affairs
5. Cost-benefit analysis of human capital
It is not number of years the organisation exists, it is the quality of human resources adding value to the organisation." |
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Due Diligence Special Interest Group
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Compare with: Strategic
Fit |
Strategic Risk
Management | Scenario
Planning
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Due Diligence Sponsor
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Special Interest Group Leader
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All you need to know about management
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Management Smart Card
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