A due diligence checklist is an essential tool to ensure that all aspects of a merger or acquisition deal are covered. A thorough due diligence can assist in avoiding costly errors find this that could cause a snag in an acquisition or merger.

A typical due diligence checklist could include documents pertaining to the company’s finances, legal operations as well as intellectual property as well as its human resources marketing and sales data and more. Each checklist will vary depending on the industry and the specific needs of the company.

Financial due diligence (also called accounting due due diligence) involves a detailed analysis of a company’s financial position that includes accounts receivable, payable cash flow, tax-related risks. It must also consist of an analysis of trends in the past along with projected figures and the capability of the company to pay its financial obligations and debt.

Human capital due diligence involves an in-depth examination of the company’s future and current requirements for staffing. This includes a complete list of employees, together with their salary, job descriptions skills, qualifications, and other details. It should also look over the benefits plans of the company and time off policies.

Operational due diligence is an examination of the company’s internal processes as well as supply chain, technology infrastructure as well as other aspects of its business. It could also include an assessment of the company’s compliance with various laws and regulations. It could also include the company’s pricing philosophy as well as the warranty policy and estimation department.

It’s important that you keep your due diligence checklist updated with any changes that occur. This will ensure that buyers receive the most accurate information possible. Keep structured records in folders with clearly defined titles to make it easier for buyers.