Financial diligence

Financial diligence is the thorough review and analysis of a company's financial health before making a major decision, like a purchase or investment. It involves examining financial statements, understanding cash flow, debts, and profitability to ensure everything is accurate and transparent. This process helps identify potential risks, verify the company's value, and ensure informed decision-making. Essentially, it's like doing a detailed financial check-up to confirm that the company's financial position is as it appears and to prevent surprises later on.