Due diligence Definition & Meaning - Merriam-Webster

The meaning of DUE DILIGENCE is the care that a reasonable person exercises to avoid harm to other persons or their property. How to use due diligence in a ... Login SignUp Hello, Games&Quizzes Thesaurus WordoftheDay Features BuyingGuide M-WBooks JoinMWU MyWordsMyWords ViewRecents Account LogOut duediligence noun SaveWord Definitionofduediligence 1 law :thecarethatareasonablepersonexercisestoavoidharmtootherpersonsortheirproperty failedtoexerciseduediligenceintryingtopreventtheaccident 2 business :researchandanalysisofacompanyororganizationdoneinpreparationforabusinesstransaction(suchasacorporatemergerorpurchaseofsecurities) DoingYourDueDiligence MoreExampleSentences LearnMoreAboutduediligence DoingYourDueDiligence Duediligencehasbeenusedsinceatleastthemid-fifteenthcenturyintheliteralsense“requisiteeffort.”Centurieslater,thephrasedevelopedalegalmeaning,namely,“thecarethatareasonablepersontakestoavoidharmtootherpersonsortheirproperty”;inthissense,itissynonymouswithanotherlegalterm,ordinarycare.Morerecently,duediligencehasextendeditsreachintobusinesscontexts,signifyingtheresearchacompanyperformsbeforeengaginginafinancialtransaction.Thismeaningmayalsoapplytoindividuals:peopleareoftenadvisedtoperformtheirduediligencebeforebuyingahouse,signingaloan,ormakinganyimportantpurchase. ExamplesofduediligenceinaSentence RecentExamplesontheWeb Theroundisasecondtrancheofthe$358,888,888fundraisingannouncedinJanuary,whichwasextendedforduediligencepurposes. — ZinniaLee,Forbes,12July2022 TheCommission’spreliminaryvisionistoorganizeitsregulatoryresponsibilitiesbythematicareas,includingasocietalissuesteam,whichwillbetaskedwithoversightoversomeofthenovelduediligenceobligations. — Wired,9July2022 Forinstance,whilefintechremainsthebiggestdrawforinvestors,aninfluxofstartupsofferingsimilarfinancialservicesandvyingforthesamepoolofcustomershasinvestorsofferingmorescrutinyandsteppinguptheirduediligenceefforts. — MartinSiele,Quartz,9June2022 Thatcanresultincompaniescuttingcornersintheduediligenceprocessandoverlookingpotentialissueswithacandidate. — NinaTrentmannAndJenniferWilliams-alvarez,WSJ,12May2022 Privateequityandhedgefunds–investmentvehiclesworthtrillionsofdollars–havealsoenjoyedatwo-decade-longexemptionfrombasicduediligencechecks. — CaseyMichel,CNN,26Apr.2022 ThatduediligenceendedwithaseismicmaneuverThursday,whenarguablythePac-12’stwobiggestbrandsbrokeawayfromtheWestCoastconferenceandconfirmedtheirintentiontomovetotheBigTenstartingin2024. — ZachOsterman,TheIndianapolisStar,1July2022 Howisduediligenceconductedonthevendorandimplementationstaffinsuchafastgrowingspace? — SeanSteinSmith,Forbes,26June2022 TheCavaliers’pre-draftduediligencewillcontinueintonextweek. — ChrisFedor,cleveland,17June2022 SeeMore Theseexamplesentencesareselectedautomaticallyfromvariousonlinenewssourcestoreflectcurrentusageoftheword'duediligence.'ViewsexpressedintheexamplesdonotrepresenttheopinionofMerriam-Websteroritseditors.Sendusfeedback. FirstKnownUseofduediligence 1598,inthemeaningdefinedatsense1 LearnMoreAboutduediligence Shareduediligence PosttheDefinitionofduediligencetoFacebook SharetheDefinitionofduediligenceonTwitter TimeTravelerforduediligence Thefirstknownuseofduediligencewas in1598 Seemorewordsfromthesameyear DictionaryEntriesNearduediligence duedate duediligence duefor SeeMoreNearbyEntries  Statisticsforduediligence LastUpdated 17Jul2022 Look-upPopularity CitethisEntry “Duediligence.”Merriam-Webster.comDictionary,Merriam-Webster,https://www.merriam-webster.com/dictionary/due%20diligence.Accessed25Jul.2022. Style:MLA MLA Chicago APA Merriam-Webster MoreDefinitionsforduediligence duediligence noun Legal Definitionofduediligence 1 :suchdiligenceasareasonablepersonunderthesamecircumstanceswoulduse:useofreasonablebutnotnecessarilyexhaustiveefforts —calledalso reasonablediligence Note: Duediligenceisusedmostofteninconnectionwiththeperformanceofaprofessionalorfiduciaryduty,orwithregardtoproceedingwithacourtaction.Duecareisusedmoreofteninconnectionwithgeneraltortactions. 2a :thecarethataprudentpersonmightbeexpectedtoexerciseintheexaminationandevaluationofrisksaffectingabusinesstransaction b :theprocessofinvestigationcarriedonusuallybyadisinterestedthirdparty(asanaccountingorlawfirm)onbehalfofapartycontemplatingabusinesstransaction(asacorporateacquisitionormerger,loanoffinances,orespeciallypurchaseofsecurities)forthepurposeofprovidinginformationwithwhichtoevaluatetheadvantagesandrisksinvolved thegreatestexposure…forfailuretoconductadequateduediligencearisesinthecontextofpublicofferingsofsecurities—G.M.Lawrence c :thedefense(astoalawsuit)thatduediligencewasconducted MorefromMerriam-Websteronduediligence BritannicaEnglish:TranslationofduediligenceforArabicSpeakers WORDOFTHEDAY extradite SeeDefinitionsandExamples» GetWordoftheDaydailyemail! 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