DDR (Due Diligence Report)Due diligence is a program of critical analysis that companies undertake prior to making business decisions in such areas as corporate mergers/acquisitions or major product purchases/sales. The due diligence process, whether outsourced or executed in-house, is in essence an attempt to provide business owners and managers with reliable and complete background information on proposed business deals so that they can make informed decisions about whether to go forward with the business action. "The [due diligence] process involves everything from reading the fine print in corporate legal and financial documents such as equity vesting plans and patents to interviewing customers, corporate officers, and key developers," wrote Lee Copeland in Computerworld. The ultimate goal of such activities is to make sure that there are no hidden drawbacks or traps associated with the business action under consideration.Due diligence can be defined as:• The examination of a potential target for merger, acquisition, privatization, or similar corporate finance transaction normally by a buyer.• A reasonable investigation focusing on material future matters.• An examination being achieved by asking certain key questions, including, how do we buy, how do we structure the acquisition, and how much do we pay?• An investigation on the current practices of process and policies.• An examination aiming to make an acquisition decision via the principles of valuation and shareholder value analysis.The due diligence process (framework) can be divided into nine distinct areas:• Compatibility audit.• Financial audit.• Macro-environment audit.• Legal/environmental audit.• Marketing audit.• Production audit.• Management audit.• Information systems audit.• Reconciliation audit.