Due diligence

Due diligence is a phrase that is most often used in a legal context, but may also be used in informal conversation. We will examine the meaning of the term due diligence, where it came from and some examples of its use in sentences.

Due diligence is a legal phrase that describes the act of making an appropriate level of investigation when considering a decision, being appropriately cautious. Due diligence often refers to the process of vetting a business that is for sale, looking at its assets and liabilities. Due diligence is also used to mean taking the necessary precautions to avoid the commission of an offense. The phrase due diligence is a combination of the words due, derived from the Latin word debere which means to owe, and diligence, derived from the Latin word diligentia, which means carefulness or attentiveness. The term due diligence has been in use in a legal sense since the mid-1400s.


Eman Sadek, the director of investor relations at RECAP Financial Investments—the real estate arm of Naeem Holding—said that the due diligence examination for a partnership with Wadi Degla Developments is set to be completed this year. (The Daily News Egypt)

A major foreign airline completed the due diligence prior to the acquisition of a significant stake in Philippine Airlines, a top executive said over the weekend. (The Manila Standard)

Conscientious preparers always want as much as possible about clients’ financial situations, but new mandates regarding tax credit due diligence mean preparers must learn more than ever this season. (Accounting Today)

GLOBAL Logistic Properties’ (GLP) special committee has shortlisted several parties and invited them to conduct due diligence on the company. (The Business Times)