M&A Due Diligence Checklist

A due diligence check list is an essential tool to ensure that all aspects of a merger and acquisition deal are addressed. A thorough due diligence process can aid in avoiding costly mistakes that could impede an acquisition or merger.

A typical due diligence checklist could include documents pertaining to the company’s finances and legal operations and intellectual property rights as well as its human resources as well as its sales and marketing information, and much more. Each checklist will differ based on the sector, and the specific needs of the company.

Financial due diligence, also referred to as accounting due diligence, involves a thorough examination of the financial position of the company including accounts receivable and payable capital assets, cash flow and tax risks. It should also include an examination of historical trends forecasts, as well as the company’s ability to meet its find this financial obligations.

Human capital due diligence involves a detailed look at the company’s future and current requirements for staffing. This includes the list of all employees, their salaries, job titles, skills and qualifications. It should also review the benefits plans of the company and time off policies.

Operational due diligence is an in-depth examination of the company’s internal processes as well as supply chain, technology infrastructure as well as other aspects of its business. It can also cover the company’s compliance with different regulations and laws. It can also include an analysis of the company’s warranty policy, pricing philosophy, and estimation department.

It is vital to keep your due diligence checklist up-to-date as changes happen. This will ensure that buyers receive the most accurate and complete information available. Keep organized records in folders with clearly defined titles to make it easier for buyers.