Due diligence is the process of thoroughly investigating and evaluating a business or investment opportunity before making a decision. This involves reviewing financial records, legal documents, and operational practices to ensure that all relevant information is considered. It helps identify potential risks and benefits associated with the opportunity. In the context of mergers and acquisitions, due diligence is crucial for both buyers and sellers. For buyers, it ensures they are making a sound investment, while for sellers, it can help present their business in the best light. Overall, due diligence promotes informed decision-making and reduces the likelihood of unexpected issues arising later.