The topic of this paper is the due diligence of a company when undertaking capital market transactions. Due diligence is a process aimed at researching and determining the content of a business activity in order to enable the assessment of the activity itself and the business subject. The main purpose of due diligence through targeted and analytical information gathering is to determine whether there are conditions for the feasibility of the planned transaction or whether there are critical elements that could jeopardize its success. The paper begins with a general description of the components of due diligence with an analysis of the different steps of the procedure. It examines the extent to which the results of the proceedings are able to influence the conditions under which the parties enter into a transaction and investment, especially with regard to the strategic decisions of the business subject in order to develop the business. One of the objectives of the due diligence procedure is to provide, useful information regarding the most appropriate instruments for conducting the transaction. The second part of this paper deals with the matter of due diligence in the role of risk minimization and the role that risks play in business transactions. There are different types of risks that need to be considered in making a final decision in any transaction and therefore due diligence is very important, in order to take into account all business and financial risks. The following part deals with SWOT analysis of due diligence in the role of risk minimization, which through the analysis of elements of the external and internal environment of business entities, provides answers to questions and business challenges of management, as a common part of business management. The last part of the paper discusses the course of due diligence with special reference to some transactions and gives special attention to the fact that the main purpose of due diligence is to determine whether there are real conditions for feasibility of the planned operation and whether there are critical elements that may negatively affect the outcome of the transaction.