When it comes to investing, one of the most important first steps is due diligence. This essential component gives you a chance to look deep into a company and uncover potential surprises that could cost your firm a lot of money and headaches down the line.
Due diligence is a systematic process that evaluates the risks involved with a particular deal, the details of the deal and the positive or negative impact the deal has on the investment portfolio. You can equate due diligence to doing your homework on a potential investment.
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