Due Diligence
Definition
The comprehensive investigation and analysis of a business prior to an investment, acquisition, or partnership. Due diligence covers financials, legal, commercial, technical, and operational areas, and increasingly includes assessment of intangible assets and productivity metrics.
Related Terms
Related FAQ
What is a no-shop clause and how long is it typical?
A no-shop clause prevents the company from actively seeking alternative buyers or investors for a defined period (typically 30-60 days), giving the lead investor time to conduct due diligence.
Read full answer →What is an exclusivity period in M&A and how does it differ from a term sheet no-shop?
An M&A exclusivity period prevents the seller from soliciting or engaging with other buyers, typically lasting 30-90 days from LOI signature, longer than VC no-shop clauses.
Read full answer →How do venture capital investors evaluate your pitch?
VCs evaluate pitches across five dimensions: team (credibility, track record), technology/product (defensibility, strength), market (size, growth, timing), business model (unit economics, scalability), and traction (customer, revenue, engagement).
Read full answer →Put this knowledge to work
Use Opagio's free tools to measure and grow the intangible assets that drive your business value.