Newco Construction and investing with due diligence

According to the Internet dictionary Investopedia, the legal contractual concept of 'due diligence' from an investor's point-of-view is simply the "care" in which "a reasonable person should take before entering in an agreement or transaction with another party," such as when considering an investment on the part of a venture capitalist. ("Due Diligence," Investopedia, 2005) A due diligence audit is performed of a corporation, to confirm all material facts in regards to an investiture of capital, such as one that is currently being performed of the Newco Construction Company, to mitigate the risks of investing capital and to ensure that full disclosure of all company assets and potential problems are made aware to both parties involved, both the investors and the company's board of directors. Such an audit was performed of Newco Construction, and the company seems to pass all tests of the...
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