ELI5: Explain Like I'm 5

Management due diligence

Management due diligence is like when you want to buy something, you want to make sure it is the right choice for you. You look at the things that come with the purchase, like the cost, the quality, and other factors. With management due diligence companies do the same things when making decisions about potential investments or business partnerships—they look closely at all the details, like the reputation and history of the company, their experience, how they treat their employees, and financials, to make sure it’s the right decision. This helps companies make sure they are choosing the right partner and making an educated decision.