Due Diligence Checklists
Due diligence is the examination of a potential target for merger, acquisition, privatization, or similar corporate finance transaction. It is normally done by a buyer. Due diligence helps to establish how much a buyer will pay after examining the target’s assets, liabilities, processes, people, and growth potential. Investigative areas typically include:
- corporate/business standing
- financial and accounting information
- physical assets
- real estate and facilities
- technology and intellectual property
- human resources – employee and employee benefits
- license and permits
- environmental issues
- taxes
- customer, supplier, and other material contracts
- products and services
- legal proceedings and lawsuits
- insurance coverage
- consultants and advisors
Common Due Diligence Mistakes To Avoid
- Transaction Myopia: Focus is exclusively on doing the deal and fails to address essential post merger integration and operational issues
- Financial Myopia: Due diligence is too narrow and limited only to the core essentials: financial, legal and tax. Fails to include: operational, cultural, strategic, and organizational capability issues
- Checklist Myopia: Over-reliance on completing check lists and data collection rather than developing insight on where the value will be created or destroyed
- Lack of Senior Executive Involvement: Delegate the due diligence to junior resources with no ongoing role
Due Diligence Checklist Templates 
Deal Documents
To effectively complete the M&A deal, Joint Venture, or Strategic Alliance, please click below to get the various documents required:
 | | | |
| Term Sheet | Due Diligence | Company Valuation | Definitive Agreement |
| | | |
| Post Merger Integration | Governance & Board | Approach Targets |
