What Is Due Diligence?

Patrick Curtis

Reviewed by

Patrick Curtis WSO Editorial Board

Expertise:Investment Banking | Private Equity

Due diligence is the act of investigating any potential investment, usually through an auditor or an audit process. Due diligence is essential to any financial process, and the purpose of it is to ensure that all facts presented (financial statements, solvency, management structure etc.) are accurate and true. Due diligence is usually carried out by an audit firm, or by some of the junior employees in the firms involved. Despite not being very prestigious or well thought of, due diligence is vital to ensure safety and peace of mind for parties involved in a transaction.

To learn more about this concept and become a master at Financial Statement modeling, you should check out our FSM Modeling Course.Learn more here.

Module 1: Getting Started

Module 2: Fundamental Concepts

Module 3: The Income Statement

模块4:把工作al

Module 5: PP&E and Intangibles

Module 6: The Cash Flow Statement

Module 7: Debt & Interest Schedule

Module 8: Finishing Your Model

Module 9: Bonus

Learn More Here

Related Terms

Return to Finance Dictionary

Patrick Curtisis a member ofWSO Editorial Boardwhich helps ensure the accuracy of content across top articles on Wall Street Oasis. He has experience in investment banking at Rothschild and private equity at Tailwind Capital along with an MBA from the Wharton School of Business. He is also the founder and current CEO of Wall Street Oasis This content was originally created by memberWallStreetOasis.comand has evolved with the help of our mentors.