oboloo Glossary

Finance Due Diligence

oboloo Glossary

Finance Due Diligence

Finance due diligence is a comprehensive review of an organization’s financial and operational performance, risk management, and future outlook. This analysis helps organizations better understand the strengths and weaknesses of their current or potential investments before making decisions about committing resources. It involves analyzing historical financial information as well as corporate documents such as board minutes, off-balance sheet arrangements, legal documents, and financial forecasts. Finance due diligence should be conducted with precision and accuracy to give organizations a clear picture of their investment decisions and minimize the risk of making costly mistakes.