Step 3: Conducting Due Diligence Once you’ve identified a deal from the pipeline that you are interested in exploring, the due diligence period commences. This process is by far the messiest and most subjective—and thus received the most commentary from those we interviewed. In general, due diligence is an investing imperative, and an iterative process. Dec 14, · Creating a due diligence framework 2 3. What is due diligence?• The investigation into the business, legal and financial affairs of an entity (the “target”)• This “target” investigation occurs in connection with a wide variety of transactions, including financings and acquisitions of shares or assets• Due diligence is essentially. The Due Diligence Framework is a powerful risk management tool that encompasses activities undertaken to assist the Senior Responsible Owner (SRO) of the programme in obtaining assurance of a potential delivery partner’s capacity and capability to deliver DFID aid. In reviewing the partner’s.