Meaning of 'Due diligence assessment'

What exactly is a due diligence assessment? I understand it’s an evaluation process to determine the value of a company before acquiring it?

Hi Spearhead,

A due diligence assessment is usually carried out by a company before acquiring another company. As you understand buying a company is a decision that requires precise and meticulous planning. So, a due diligence assessment is the evaluation process that takes place before a new company or business unit is acquired by another company. Let me know if this makes sense to you and maybe I can give you more examples.