Generally – and as a legal term from the Anglo-Saxon language since about 2000 more and more penetrated into the German language – said for the due diligence (= obligation to protect the interests of others) necessary in (business) dealings. – The necessary prudence (careful attention) when acting on the financial market, and here in particular when weighing up the risks of all kinds – The thorough examination and proper valuation of an asset – in general within the framework of a planned business transaction and – in particular before a company acquisition. The aim of such efforts is to uncover hidden risks – including any tax liabilities; the investigation aimed solely at this is often called tax due diligence – as well as the assessment of possible profit prospects from the transaction or acquisition; in this case also often called due diligence review (the process of evaluating the business and financial viability of a potential investment target, as well as the impending terms and conditions of an investment agreement). – The process of evaluating the business and financial viability of a potential investment target as well as the pending terms and conditions of an investment agreement. – See buy-out, compliance, purchase price (partial) deferral, customer advisory, feasibility study, minimum risk management requirements, rating, risk management, takeover risks. – Cf. 2004 BaFin Annual Report, p. 183 (regarding hedge funds), 2005 BaFin Annual Report, p. 131 (regarding conflicts of interest at a bank), 2009 BaFin Annual Report, p. 66 (due diligence for investment funds):
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
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