What is DUE DILIGENCE | Meaning DUE DILIGENCE | DUE DILIGENCE checklist | DUE DILIGENCE explained

We are looking at the term DUE DILIGENCE. What is due diligence? As well as look at the meaning and definition of Due diligence the video will provide an example of due diligence in the acquisition of a business.
#mergersandacquisitions #Entrepreneurship #speaklikeshaf
Please subscribe to my Channel.
/ @shafrasulwealth
Hi and welcome back to Speak Life Shaf. You know the deal, this is where I help you understand all that puzzling business jargon and along the way teach you a thing or two about becoming an entrepreneur. Today I’m going to talk to you about something really important, in business speak this is often abbreviated to DD we are of course talking about due diligence.
But first, I’m going to call on a friend of mine to help me explain to you what due diligence is. Here’s Rab The Rock Star. He lived in the Stone Age and was the world’s original entrepreneur. That’s right the very first entrepreneur .You see, he came up with a business idea to make and provide tools to hunters to help them catch their prey. His business soon took off and Rab did really well. He had employees and ended up having to move to bigger premises, a bigger cave, to accommodate his growing company. After many, many years, Rab was considering retiring and selling his business to a rival, Pete Pebble. Potential buyer Pete investigated Rab’s business. He looked at how it was run, found out how much Rab charged customers, what he reinvested his profits in. If Rab had kept written accounts instead of scrawls on the cave wall, Pete would have looked at those too! Essentially, Pete completed due diligence on Rab’s business before a deal was concluded. As an aside, Rab decided not to retire. He didn’t like the cut of Pete’s loincloth and refused to sell to him. In the end Rab’s daughter’s Boulder and Purity took over the business. So, our friend Rab can add successor planning to his list of entrepreneurial achievements,
In this day and age, due diligence is an investigation or exercise of care that a business or person is expected to take before entering into an agreement or contract with another party. Its aim is to identify any potential problems or unexpected liabilities. It’s used when entering into a partnership or a major contract.
A good example, similar to Pete Pebble, is when someone evaluates a business or company with a view to buying it. Due diligence means that any bid is informed, the risks, costs and benefits have all been looked at and considered and the price offered will reflect that. One thing that business people - and even more importantly, investors - don’t like is surprise and due diligence, in theory, lets them make informed decisions and avoid any nasty shocks at the end of the transaction. Buyers get exactly what they are paying for.
The trouble with this process is that it can take forever! Everyone wants a piece of the action. Brokers, lawyers, accountants can all get involved and you can bet your bottom dollar that they all want different pieces of information, which can sometimes prove tricky and time-consuming for the seller to source. As a general rule, buyers will want to look at records, accounts, assets, operations, competitors and market comparisons, and an analysis of intellectual property rights.
Due diligence is one of the most important things you can do before signing on the dotted line. We do it constantly, and even if we find something worrying, it doesn’t always mean the deal will be off. We simply consider changing the terms of the deal. Now that you know what it means, don’t forget to do it in your business life! Let me know what you think. Like, comment and remember to subscribe to my KZbin channel.
Did you enjoy this video please check out my 7 hacks videos.
• 7 Hacks for Entreprene...
Social Media:
LinkedIn : / shafrasul
Twitter : sh...
Website : www.shafrasul.com/

[@capitalstarpropertygroup]

Hi Shaf, I really can't thank you enough for showing us how to do due diligence in a previous video. I was approached by a so call businessman with a deal. Because of your video you have saved me from losses of over 500k and possibly court proceedings and who knows what else. Thank you for being on KZbin and giving up your time and enriching us with knowledge.

[@ShafRasulWealth]

Damaris Bachero Thank you for the feedback 😉 If you have any property or business-related questions. I am absolutely delighted to answer your questions. Just post any questions you have on my #askshaflive videos which can be found on my KZbin channel. I will do my best to answer them in a future video here's a link to this weeks #askshaflive please leave any comments or questions there. kzbin.info/www/bejne/o5u7coGegtFnh5o

[@fiaancloete4656]

Dear Mr Rasul, your videos are very helpful and as a starting entripruneer I am inspired even more from watching your videos. No all wealthy people will make time to share or inspire or mentor others. Thank you for making time to give back. You will stay blessed👏👏👏👏🙏

[@trixztv6168]

Thank you for teaching this topic.

[@razwanali9662]

Great comprehensive account of what due diligence means. Term branded about a lot but don’t think many of us truly know what it entails. Thanks for clarifying Shaf!

[@ShafRasulWealth]

Razwan Ali Glad you liked it thank you for the feedback 😉

[@madhu3363]

legends like you needed us to provide a concepts like this. thanks for the information.

[@branhamchima]

I gave this video its 522nd like. Thank you for the knowledge.

[@smartcapitaltv4413]

Great video, nicely explained.

[@pedrocamacho6627]

I appreciate it very much man looking to build my portfolio

[@blossomdyte7071]

Very clear. Thanks.

[@ORIGINOLINDIVIDUAL]

Shaf is one of the good guys

[@ShafRasulWealth]

ORIGINALINDIVIDUAL Thank you

[@jswvws90]

Thanks Shaf, really good. I wondered if you could do an example of your due diligence process from buying and selling a business for example, I know you’ve touched over this before in a video previously

[@jswvws90]

Of a business you’ve bought and sold**

[@ShafRasulWealth]

jswvws90 absolutely delighted to answer your questions. Just post any questions you have on my #askshaflive videos which can be found on my KZbin channel. I will do my best to answer them in a future video.kzbin.info/www/bejne/lXfUaGx5pKt6pcU

[@damindabandara5594]

Great video. Could you do one about warranties and disclosures one might use to mitigate risk?

[@monsterp1970]

Hi Shaf. I know you've mentioned that you'll do a video on HOW to do DD on a company, but I can't find it on your list yet. I'm looking to invest in a company soon. I tried to use DueDil, but they are not interested and don't even bother to answer the phone or emails. Any other ways to do credit reports and understand Companies House balance sheets? Cheers! 👍

[@craigrobertsonmsc.6260]

Nice one Sir.

[@ShafRasulWealth]

Glad you liked it thank you for the feedback 😉

[@JiingLiing]

👍🏻👍🏻👍🏻👍🏻

[@bucksauvageau]

🕊️

[@walterescalante6141]

Thanks favorite bald guy

[@addya4011]

RIP RAB. All seriousness thanks

[@ShafRasulWealth]

Addy A Thank you for watching 😉

[@healthiswealth8153]

why say due diligence? They make it sound like its a bigger mystery than it is? just say research and make sure the numbers add up it sounds a lot more of a normal sounding explanation

[@s_u_n_j_a_y]

🤣

[@nikitaradion3301]

Get a better mic please

[@Lisa-rx6io]

terrible example lmfao. that is not how early humans functioned. would have been nice to see this used in a modern way since its a modern concept.