Ordlista
/

Due diligence

Due diligence

Due diligence is a review of a company carried out ahead of an investment or acquisition.

What is due diligence?

Due diligence is a systematic review of a limited company that a buyer or investor carries out ahead of a deal. It covers finances, contracts, legal matters and, not least, ownership.

 

The share ledger in a due diligence

One of the first things reviewed is the share ledger, the cap table and any shareholders' agreement. Errors or gaps in the ownership history can delay or derail a deal — which is why a traceable digital share ledger is a big advantage.

Get help with complex transactions
Henrik Kristensen, NVR
Behöver du hjälp att komma igång med aktieboken? Vi hjälper dig!

Related terms

Acquisition

An acquisition means a company or person buys shares or a whole company.

Valuation

A valuation is an estimate of what a company or a shareholding is worth.

Share ledger

A share ledger is a record of a company's shares and who its shareholders are.

Cap table

A cap table is an overview of how ownership in a company is distributed among its shareholders.