Due diligence is the process employed by businesses to assess the potential risks associated with a particular investment or transaction. During due diligence, business owners and decision-makers gather information about a potential partner or party in order to develop an accurate understanding of their operations, financial status, risk factors, and other pertinent details. In this way, businesses can make informed decisions about whether to move forward with a business relationship – avoiding costly mistakes, reducing legal liabilities, and protecting their interests.