Due diligence is an investigation or audit of a potential investment. Offers to purchase an asset are usually dependent on the results of a detailed due diligence analysis. This includes reviewing all financial records plus anything else deemed material to the sale.
Business valuation is a process and a set of procedures used to estimate the economic value of an owner’s interest in a business. There are several different business valuation methods available to determine the value of a business.
Management Buy Out
In a management buy out, the managers of a company purchases it with support from venture capitalists.