Practical Law ANZ Glossary w-010-8360 (Approx. 4 pages)
Glossary
Due diligence
The process of gathering important information (usually commercial, financial and legal information) about a company, a business or assets. Due diligence is often conducted in a number of different contexts.
Acquisitions
On any significant proposed acquisition of a business or assets (including an acquisition of shares in a company or an interest in real property), the prospective buyer (and any other parties with an interest in the transaction) will need to decide at what price and on what terms the proposed acquisition represents a sound commercial investment. The purpose of due diligence, which is usually carried out by the potential buyer, is for the buyer to obtain and review sufficient information about the target asset, business or company to form a view on those matters before committing to the purchase. The information about the target is usually made available by the seller in a data room.