It’s whether it’s a new car, a home or a whole company the majority of people want to be aware of the positive and negative aspects of what they are spending time, money or energy on. They want to ensure that they are making the best decision possible and will not have unpleasant surprises down the road. This is why they conduct due diligence, a process that looks at a purchase or investment in order to assess risk.

There are a variety of types of due diligence. They include environmental, financial, legal commercial, intellectual property and commercial. The specific areas examined depend on the kind of due diligence, but generally include the examination of contracts, licenses loan, employment issues legal and regulatory matters and property, as well as any litigation in the process.

Financial due diligence focuses on checking and evaluating the fundamental financial data of a company like earnings or profits, assets cash flow, liabilities, and debt. This could include analysis of ratios using financial tools, and sizing up a company to forecast future performance.

Commercial due diligence analyzes an organization based on its competitive and market, and can help determine whether a company is profitable in the long run. It can also help identify potential synergies connecting the dots with data visualization tools and growth through a merger or acquisition.