Due Diligence is a type of investigation involving the investigation of a person or business before signing a contract and be binded to an entity and have liability. This type of investigations can be useful in advancement of investments, partnership opportunities, dispute negotiations or employment offers.
A due diligence investigation is a type of pre-transaction or pre-employment corporate investigation that tries to uncover details of a company’s management, owners, finances, performance, mission, history, aims, suppliers, clients, industry and any other details that may affect how a company does business. Due diligence is important because it ensures that are no hidden liabilities, and there are no surprises in the future.
Due diligence is also good for pre-employment check, so there isn't a future problems. This usually includes criminal history search and background check.