Due diligence is a comprehensive array of research and verifications conducted by a business in order to evaluate the potential value, financial or otherwise, of a new venture or acquisition. A due diligence checklist typically includes verifying financial statements, researching any legal issues, assessing the quality of management, examining facility operations and evaluating market demand for services or products. For smaller businesses, it’s essential to have adequate procedures in place for a thorough due diligence review so that the risks associated with such transactions can be identified and addressed before any commitments are made.