This due diligence checklist lists industrial and operational information and issues within company departments regarding business transactions.
This due diligence checklist lists industrial and operational information and issues within company departments regarding business transactions.
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Your due diligence should include the company's: General ledger. Company credit report. Financial statements from the past 3 years. Summary of all debts and contingent liabilities. Summary of inventory, accounts receivable, and accounts payable. Depreciation, amortization, and accounting methods.
Due diligence checklist Look at past annual and quarterly financial information, including: ... Review sales and gross profits by product. Look up the rates of return by product. Look at the accounts receivable. Get a breakdown of the business's inventory. ... Make a breakdown of real estate and equipment.
It involves digging through a business's records, checking references, ensuring everything checks out, and searching for items the business might have hidden. Don't conduct business due diligence alone. Hire an accountant and a lawyer who have experience in this area.
Sample Due Diligence Questionnaire - What Questions Does it Include? Company Information. Financial Information. Employee Information. Legal Information. Product Information. Consumer Information. Intellectual Property Information. Physical Asset Information.
Due diligence It should test the story the owner tells about their business. Due diligence should check: pending court cases or other legal disputes, eg over intellectual property. the business owns all key assets, eg property, equipment, vehicles and intellectual property, and can therefore sell them to you.