Due diligence is an analysis and risk assessment of on impending business transaction. It is the careful and methodological investigation of a business or persons, or the performance of an act with a certain standard of care to ensure that information is accurate, and to uncover information that may affect the outcome of the transaction. Scope of due diligence is transaction based and is depending on the needs of the people who are involved in the potential investments, in addressing key uncovered issues, areas of concern/threat and in identifying additional opportunities.Due diligence considers the industry of the target company. It examines the business affairs having a significant impact on the prospects of the business. It explores significant business practices and business models. It examines relevant aspects of the past, present and near future of the business. It also assesses the advantages and risks associated with a particular transaction.