Due diligence is the process of researching and validating all elements of an acquisition before it takes place. It’s a fundamental piece of any business acquisition, enabling buyers to make informed decisions and avoid potential financial pitfalls by uncovering important information. The due diligence list for acquiring a company usually includes reviewing financial statements, verifying assets, evaluating liabilities, conducting interviews, analyzing legal documents and understanding tax obligations. Performing due diligence during the acquisition process can help protect a business from unexpected surprises and ensure a successful and hassle-free business transition.