Due diligence

Due diligence is the review process used before acquisitions, financings, investments or significant contracts. In Switzerland it commonly covers corporate authority, ownership, contracts, employment, regulatory permits, litigation, tax, intellectual property, data protection and environmental matters. Findings shape price, warranties, indemnities, conditions precedent and post-closing integration. The term also appears in compliance contexts, such as anti-money-laundering, sanctions, supply-chain and ESG checks. The required depth depends on transaction size, sector risk, access to information and the buyer’s reliance on disclosures.