{"id":4581,"date":"2026-11-04T10:33:36","date_gmt":"2026-11-04T09:33:36","guid":{"rendered":"https:\/\/graftoncorporate.com\/?post_type=avada_faq&#038;p=4581"},"modified":"2026-11-04T10:33:36","modified_gmt":"2026-11-04T09:33:36","slug":"what-is-due-diligence","status":"publish","type":"avada_faq","link":"https:\/\/graftoncorporate.com\/en\/faqs\/what-is-due-diligence\/","title":{"rendered":"What Is Due Diligence?"},"content":{"rendered":"<p>What Is Due Diligence and Why Can It Affect the Purchase Price?<br \/>\n<strong data-start=\"2818\" data-end=\"2835\">Due diligence<\/strong> is a <strong data-start=\"2837\" data-end=\"2856\">comprehensive review<\/strong> of a company&#8217;s <strong data-start=\"2872\" data-end=\"2931\">financial, legal, tax, employment, commercial, and technical<\/strong> aspects. If potential risks are identified (e.g., litigation, contracts pending renewal, or <strong data-start=\"3005\" data-end=\"3015\">EBITDA<\/strong> adjustments), the buyer may request<strong data-start=\"3043\" data-end=\"3064\"> price adjustments<\/strong>, a larger <strong data-start=\"3072\" data-end=\"3082\">escrow<\/strong> (an escrow is a secure account in which a portion of the purchase price is held for a specified period to cover potential indemnity claims), or<strong data-start=\"3088\" data-end=\"3102\"> Warranty &amp; Indemnity<\/strong> <em data-start=\"3104\" data-end=\"3126\">(W&amp;I) <\/em><strong data-start=\"3128\" data-end=\"3166\">insurance to protect <\/strong>against potential liabilities.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>What Is Due Diligence and Why Can It Affect the Purchase Price? Due diligence is a comprehensive review of a company&#8217;s financial, legal, tax, employment, commercial, and technical aspects. If potential risks are identified (e.g., litigation, contracts pending renewal, or EBITDA adjustments), the buyer may request price adjustments, a larger escrow (an escrow is a <a href=\"https:\/\/graftoncorporate.com\/en\/faqs\/what-is-due-diligence\/\">&#8230; [Leer m\u00e1s]<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"menu_order":0,"comment_status":"open","ping_status":"closed","template":"","format":"standard","meta":{"footnotes":""},"faq_category":[218],"class_list":["post-4581","avada_faq","type-avada_faq","status-publish","format-standard","hentry","faq_category-frequently-asked-questions-about-buying-and-selling-businesses"],"_links":{"self":[{"href":"https:\/\/graftoncorporate.com\/en\/wp-json\/wp\/v2\/avada_faq\/4581","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/graftoncorporate.com\/en\/wp-json\/wp\/v2\/avada_faq"}],"about":[{"href":"https:\/\/graftoncorporate.com\/en\/wp-json\/wp\/v2\/types\/avada_faq"}],"author":[{"embeddable":true,"href":"https:\/\/graftoncorporate.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/graftoncorporate.com\/en\/wp-json\/wp\/v2\/comments?post=4581"}],"version-history":[{"count":1,"href":"https:\/\/graftoncorporate.com\/en\/wp-json\/wp\/v2\/avada_faq\/4581\/revisions"}],"predecessor-version":[{"id":4600,"href":"https:\/\/graftoncorporate.com\/en\/wp-json\/wp\/v2\/avada_faq\/4581\/revisions\/4600"}],"wp:attachment":[{"href":"https:\/\/graftoncorporate.com\/en\/wp-json\/wp\/v2\/media?parent=4581"}],"wp:term":[{"taxonomy":"faq_category","embeddable":true,"href":"https:\/\/graftoncorporate.com\/en\/wp-json\/wp\/v2\/faq_category?post=4581"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}