Due diligence is also translated as "due diligence". It refers to a series of investigations conducted by the acquirer on the assets and liabilities, operating and financial status, legal relationship, opportunities and potential risks of the target company during the acquisition process. It is one of the most important links in the process of enterprise merger and acquisition, and it is also an important risk prevention tool in the process of enterprise merger and acquisition. In the process of investigation, professional experience and expert resources in management, finance and taxation are usually used to form independent opinions to evaluate the advantages and disadvantages of mergers and acquisitions as decision support for management. The investigation is not limited to reviewing the historical financial situation, but also focuses on assisting the acquirer to reasonably predict the future, which also occurs in the preliminary work of venture capital and public listing of enterprises.

legal ground

Article 7 of the Law of People's Republic of China (PRC) Commercial Bank, when a commercial bank conducts credit business, it shall strictly examine the credit standing of borrowers, and ensure and guarantee the timely recovery of loans.

Commercial banks recover the due principal and interest of loans from borrowers according to law, which is protected by law.