Dot Wordsworth

Due diligence

This piece of business jargon has deep devotional roots

issue 04 July 2015

No doubt you, too, have had the feeling, upon glancing at an article in a paper picked up in a train or café, that it might mean something to someone, but it means nothing to you. I read this sentence in the Times the other day: ‘Not everyone builds an M&A machine on the back of stuff people throw away, such as till receipts and paper cups.’ A machine? On the back of stuff? And what are M&As — like M&Ms?

But I persevered, and later in the piece a phrase appeared without which no indigestible article is complete: ‘Mr Roney’s due diligence on family firms is so painstaking that he typically waits for one of four issues: succession, financial crisis, health or divorce.’ Issues here means ‘problems’ and health means ‘sickness’. But what does due diligence mean?

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