
zugrunde gehen
to perish
To be completely destroyed, go under, or die.
Ohne Wasser würden die Pflanzen in der Hitze schnell zugrunde gehen.
Without water, the plants would quickly perish in the heat.
to perish / underlie
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to perish
To be completely destroyed, go under, or die.
Ohne Wasser würden die Pflanzen in der Hitze schnell zugrunde gehen.
Without water, the plants would quickly perish in the heat.

to underlie
To be the basis, cause, or foundation for something.
Der Untersuchung liegt die Annahme zugrunde, dass der Täter das Opfer kannte.
The investigation is based on the assumption that the perpetrator knew the victim.

to base on
To use something as the basis or starting point for an assessment, calculation, or decision.
Für die Kalkulation müssen wir die aktuellen Materialpreise zugrunde legen.
For the calculation, we have to base it on the current material prices.

to ruin
To completely ruin someone or something, both materially and morally.
Seine Spielsucht hat ihn und seine Familie finanziell zugrunde gerichtet.
His gambling addiction financially ruined him and his family.
The word 'zugrunde' is a fixed combination of 'zu' (to) and 'Grunde', the dative of 'der Grund' (ground/basis). It literally means 'to the ground' or 'onto the ground'. This origin explains the meanings of destruction or basis.
Das alte Gebäude ist bei dem Sturm zugrunde gegangen.
The old building perished in the storm.
'Zugrunde' is almost always used with a verb and behaves in the sentence like a separable prefix. In a main clause, the conjugated verb is in position 2 and 'zugrunde' is at the end. In a subordinate clause, both parts stand together at the end.
Seine Firma ging durch die Krise zugrunde.
His company went under because of the crisis.
The expression 'zugrunde liegen' (to underlie/be based on) is used with the dative. The thing that serves as the basis is the subject, and the thing for which it is the basis is in the dative.
Dem Vertrag liegt eine lange Verhandlung zugrunde.
A long negotiation underlies the contract.
The expression 'zugrunde legen' (to base on/use as a basis) is used with an accusative object. The person acting is the subject, and the thing used as the basis is in the accusative.
Der Gutachter legte seiner Bewertung die neuesten Daten zugrunde.
The expert based his evaluation on the latest data.
All expressions with 'zugrunde' belong more to written language or a formal style. 'Zugrunde liegen' (to underlie/be based on) and 'zugrunde legen' (to base on/use as a basis) are especially typical of academic, legal, or official texts.
Der Argumentation des Autors liegt ein Denkfehler zugrunde.
A flaw in reasoning underlies the author's argument.
to die
Sterben refers neutrally to the end of a life. Zugrunde gehen can also express a person's death, but it emphasizes more strongly a destructive process or harmful living conditions. Sterben is therefore more suitable for a simple announcement of someone's death.

Der Mann ging unter den harten Bedingungen der langen Gefangenschaft zugrunde.
The man perished under the harsh conditions of his long captivity.
Der Mann starb nach vielen Jahren in Gefangenschaft.
The man died after many years in captivity.