what is a due diligence example 
examples of due diligence can be found in many areas of our daily lives for example conducting a property inspection before completing a purchase to assess the risk of the investment an acquiring company that examines a target firm before completing a merger or acquisition and an employer performing a background check on a potential recruit the bottom linedue diligence is a process or effort to collect and analyze information before making a decision or conducting a transaction so a party is not held legally liable for any loss or damage the term applies to many situations but most notably to business transactions due diligence is performed by investors who want to minimize risk broker dealers who want to ensure that a party to any transaction is fully informed of the details so that the broker dealer is not held responsible and companies who are considering acquiring another firm fundamentally doing your due diligence means that you have gathered the necessary facts to make a wise and informed decision 