Necessary evaluation in the purchase and sale of a company to verify financial or business information. It usually requires the assistance of a specialized third party who reviews the statements of each of the parties involved in a business. The objective is to determine the real value of the business for its purchase or sale, so that the acquirer is clear on what is being bought and what the real economic and financial situation of the business is. In banks, regulations to prevent money laundering require financial entities to apply whatever requirements are necessary for the proper identification of their clients, corporate accounts, and other financial vehicles.
« Back to Glossary IndexDue diligence
« Back to Glossary Index