Definition of Due Diligence
The words due diligence can be translated directly from English to Spanish meaning “due diligence” but the terminology as such has ambiguous and quite extensive meanings.
In business jargon, when these words are used, they refer to the procedures that are carried out with the purpose of gathering information about an organization, either its areas of activity, the state of its assets and liabilities, as well as the future projections of the company. All this can mean the words due diligence when used in the middle of a business acquisition or purchase.
Similarly in the legal lexicon when the words due diligence are used, it is to refer to the legal audits to be performed or to be executed, in order to establish a business relationship, these diligences are performed in order to know what are the latent or existing risks arising from the business relationship that will be carried or is being carried.
SYNONYMS FOR Due Diligence
Being an Anglo-Saxon terminology, i.e. derived from two English words, the synonyms of these in Spanish would be:
● Due diligence
Investigation of a company
Investigation of a person
● sanitation of law
● among others
All these terms can be used synonymously as they have the same meaning and purpose.
ORIGIN OF Due Diligence
It is a term of English origin and is derived from the due diligences that have to be executed before formalizing a business between companies or individuals.
CURIOSITIES OF Due Diligence
It is curious that this term was coined from the English language and is commonly used in the commercial jargon among Spanish speakers, but even more curious is that nowadays many people formalize businesses without performing due diligence.