Due Diligence Checklist: What You Need to Know | Axiom Law (2024)

FAQs

Due Diligence Checklist: What You Need to Know | Axiom Law? ›

This element of due diligence examines financial aspects of the business and can include trading data, balance sheet, and the financial forecast for the company. Things to consider include but is not limited to: company accounts and statements highlighting cash flow, including profit and loss.

This element of due diligence examines financial aspects of the business and can include trading data, balance sheet, and the financial forecast for the company. Things to consider include but is not limited to: company accounts and statements highlighting cash flow, including profit and loss.

Due diligence on the transaction includes the review of all matters that may affect the likelihood of timely repayment, such as information about the goods and services being financed and related contracts, and may include review of financial projections.

Legal due diligence is the process of collecting and assessing all of the legal documents and information relating to the target company. It gives both the buyer and seller the chance to scrutinize any legal risks, such as lawsuits or intellectual property details, before closing the deal.

Intangible Factors. In addition to the four key principles of people, performance, philosophy, and process, four intangible factors can also play a role in manager selection: passion, perspective, purpose, and progress.

If a business chooses to pursue simplified due diligence for a given customer or transaction, it must still meet the basic CDD requirements. These include: Verifying the identity of all customers. Verifying the identity of all beneficial owners (when doing business with companies)

The standard of diligence refers to the level of care, caution, and thoroughness that is expected in a particular context. It is often used in the field of human rights law to determine the actions that states should take to address various issues, such as racial discrimination and violence against women.

What does a due diligence include? ›

Due Diligence Meaning: Due Diligence is a process that involves risk and compliance check, conducting an investigation, review, or audit to verify facts and information about a particular subject.

Other examples of hard due diligence activities include: Reviewing and auditing financial statements. Scrutinizing projections for future performance. Analyzing the consumer market.

Information on Complying with the Customer Due Diligence (CDD) Final Rule. The CDD Rule, which amends Bank Secrecy Act regulations, aims to improve financial transparency and prevent criminals and terrorists from misusing companies to disguise their illicit activities and launder their ill-gotten gains.

(b) For purposes of this rule, “reasonable diligence” shall mean that a lawyer acts with commitment and dedication to the interests of the client and does not neglect or disregard, or unduly delay a legal matter entrusted to the lawyer.

Diligence is the use of care or persistence in performing duties; thorough attention to a matter; heedfulness; assiduity. Diligence is the opposite of negligence. Due diligence is the use of reasonable care ordinarily required by the circ*mstances.

Legal due diligence is a safeguard against unforeseen legal complications and is a cornerstone of informed decision-making in business transactions. It's a complex process that requires the expertise of legal professionals most of the times to navigate effectively.

Below, we take a closer look at the three elements that comprise human rights due diligence – identify and assess, prevent and mitigate and account –, quoting from the Guiding Principles.