Legal AI glossary
Due diligence
The review of a business’s documents and legal position before a transaction, to identify risks and issues.
What Due diligence means
In a sale, investment or financing, the buyer’s lawyers review the target’s contracts, corporate records, employment terms, property and disputes. The aim is to find issues that affect value or need protection in the deal, such as change-of-control clauses, unusual liabilities or termination rights.
Findings are usually recorded in a report or a table, one row per document or issue, so they can be reviewed and prioritised.
In Consilena
The Batch Review grid reviews many documents at once, with one row per document for fact, applicable law and risk, so you can review a whole data room in one place.
Frequently asked questions
What is Due diligence?
The review of a business’s documents and legal position before a transaction, to identify risks and issues.
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