What’s Actually Included in Proper Due Diligence? (Most People Miss This)

When people hear “due diligence,” they often think “financials.”

That’s only one-third of the picture.

A true due diligence process should cover at least these core areas:

• Financial: Is the revenue real? Are there hidden liabilities? Do margins hold up across clients and time periods?

• Operational: Can the business run without its founder? Are processes documented and repeatable? What breaks when it scales?

• Leadership & Culture: Who’s really in charge? Will they stay? Is there a second layer of leadership—or just personality?

Due diligence is not just about detecting fraud.
It’s about understanding risk, sustainability, and readiness.

If you’re investing based only on the P&L, you’re not doing due diligence.
You’re doing accounting.