Financial due diligence is a process whereby an organization or individual assesses the financial position of another entity or target. This involves analyzing the components of the target’s financial performance, such as assets, liabilities, income and expenses, with the intention of gaining insight into the health of the potential investment opportunity. The goal is to evaluate whether the company meets certain criteria before the prospective investor decides to go ahead and invest in the business. By engaging in a due diligence process, investors can rest assured that they have done their due diligence properly and are making informed decisions about investing in companies that fit their investment goals and objectives.