expression

due diligence

careful investigation before a business decision

In more detail

the careful investigation or review of something (such as a business, investment, or legal matter) before making a decision, especially to check that all information is correct and there are no hidden problems

Examples

The bank conducted due diligence before approving the loan application.

How to use due diligence

Due diligence is a formal term primarily used in business, legal, and financial contexts to describe the systematic, methodical investigation required before major transactions, acquisitions, or investments. It emphasizes both the procedural thoroughness and the responsibility to uncover material information. The phrase is less common in everyday speech and carries connotations of professional obligation and risk management.

Common phrases

conduct due diligence
perform due diligence
due diligence process
due diligence investigation
financial due diligence
legal due diligence

Synonyms

thorough investigation · careful examination · detailed review · comprehensive assessment · scrutiny

Opposites

negligence · oversight · carelessness

A common mistake

Learners sometimes use 'due diligence' incorrectly to mean simply working hard or being careful generally; it specifically refers to a formal, documented investigation process in professional contexts, not just general diligence or effort.

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