Why is conducting thorough due diligence essential before investing in a company?
Due diligence is the process of investigating and evaluating a potential investment opportunity before committing any capital. It is a crucial step for private equity firms, as they often acquire majority stakes in companies and take on significant financial and operational risks. In this article, we will explore why conducting thorough due diligence is essential before investing in a company, and what are some of the key aspects and methods of due diligence.