Due diligence investigation, also translated as "prudent investigation", is one of the most important links in the corporate acquisition and merger procedures.

Due diligence specifically refers to a series of investigations conducted by the acquirer on the assets and liabilities, operating and financial conditions, legal relationships, and opportunities and potential risks faced by the target company during the acquisition process. It is an important risk prevention tool during acquisition operations.

In the investigation process, professional experience and expert resources in management, finance, and taxation are usually used to form an independent point of view, which is used to evaluate the merits of mergers and acquisitions and serve as support for management decision-making. The investigation is not limited to reviewing historical financial conditions, but also focuses on assisting the acquirer to reasonably anticipate the future. It also occurs in venture capital and pre-public listing work.