For those big, powerful and wise enough, the latest trend in due diligence strategy is... don't bother.
Warren Buffett recently addressed MBA students at IMD, the Swiss business school. He was there to talk about a deal he struck a few years ago where Berkshire Hathaway paid $4bn for 80% of Iscar, a metal tools manufacturer.
Mr Buffett admitted that he never bothered with due diligence except where there were environmental concerns.
He said that he could tell within minutes of talks commencing if a deal was going to occur. The deal should be so obvious to you. If you have to carry the calculation out to five decimal places, like pi, it can't be a good deal.
Unless you have as much investing experience as Mr Buffet, or indeed as deep pockets, we strongly recommend completing thorough due diligence before every deal!
More on operational, taxation and financial due diligence here.
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