the.com/due diligence
paranoia, professionalized and billed by the hour.
means the systematic homework you do before a deal, hire, or investment, to confirm it is what it claims to be.
from a legal term formalized by the us securities act of 1933, which required brokers to investigate companies before selling their stock or face liability for lying.
legal shieldoriginally invented to protect brokers, not buyers
time sinkcan take weeks and involve hundreds of documents
famous failuretheranos investors skipped verifying the actual technology
for instance
theranos investors — lost $700m+ by trusting demos over lab verification, 2015
hp autonomy deal — hp wrote off $8.8b in 2012 after missing accounting fraud