Due Diligence
The investigation a buyer performs to verify a business's claims before purchasing.
Due diligence is the systematic investigation a buyer conducts before acquiring a business. It covers financials (revenue verification, expense audit), legal (IP ownership, contracts, liabilities), technical (code quality, infrastructure, security), operations (processes, dependencies, key personnel), and market (competition, growth potential). On Enterpricr, the due diligence period begins after escrow is funded and typically lasts 7-14 days depending on deal size. Our platform provides structured checklists and secure document sharing to streamline the process.
Related Terms
Escrow
A secure third-party holding of funds until both buyer and seller fulfill their obligations.
Asset Transfer
The process of transferring all business assets (code, accounts, domain) from seller to buyer.
NDA (Non-Disclosure Agreement)
A legal contract preventing the sharing of confidential business information.