Due diligence is the process of systematically researching and verifying the accuracy of a statement. It is an inventory, research and analysis of a company or organization done in preparation for a business transaction (as a corporate merger or purchase of securities). Because of the delicate nature and importance of such judgments to the prospects for the performance of a company's equities in the public market, there is a strong emphasis on neutral, unbiased analysis of both the current financial state and future prospects of the firm in question. Common cases may entail analysis of: