Due diligence is the process of gathering and verifying relevant information about a company or person to enable the diligent, or “ordering” party (which can be either the buyer or the seller), to make an informed decision. The due diligence process should expand upon any information that the parties already hold but should also provide additional information that may affect the ultimate beneficial owner, including media coverage, litigation, enforcement actions, or reputational concerns. For buyers, thorough due diligence reduces the risk involved in purchasing another company. Adequate due diligence gives the buyer transparent oversight and equips a buyer to make an informed decision about whether to proceed, adjust the terms, or walk away.