Due Diligence List
Overview of this form
The Due Diligence List is a comprehensive checklist designed to assist in the due diligence process during business transactions, particularly joint ventures. This form serves to document essential information about a company and its subsidiaries to ensure that all assets and liabilities are accounted for. It differs from other forms by focusing specifically on the due diligence requirements necessary to evaluate and validate the assets and operations of a potential business deal.
Form components explained
- Basic information and background: Includes company charter, bylaws, and meeting minutes.
- Financial information and advisors: Contains audited financial statements and management letters.
- Assets and intellectual property: Lists all real and personal property, licenses, and agreements.
- Material contracts: Documents major agreements, including supply contracts and partnerships.
- Employee matters: Covers organizational charts, employee benefits, and labor disputes.
- Regulatory matters: Details required permits, licenses, and compliance with regulations.
- Tax matters: Encompasses tax returns and descriptions of tax audits.
- Insurance: Provides details on existing insurance policies and claims experience.
- Other information: Includes major competitors and proposed facilities.
Common use cases
The Due Diligence List should be used when entering into a joint venture where one partner is contributing assets or technology. It is especially important when verifying that the assets are in good condition and that they are sufficient for the start-up and operational needs of the new venture. This checklist is vital for ensuring that all aspects of the business are accounted for before finalizing an agreement.
Who should use this form
The following individuals or entities should consider using the Due Diligence List:
- Business partners entering into a joint venture.
- Investors seeking to evaluate the integrity of a company before investment.
- Legal and financial advisors conducting thorough assessments for clients.
- Companies planning to merge or acquire another business.
Instructions for completing this form
- Identify the name of the company and its subsidiaries that are involved in the transaction.
- Gather all necessary documentation and information as outlined in each section of the checklist.
- Complete each item, indicating whether the documents have been provided or are not applicable.
- Ensure all sections are filled out thoroughly to avoid missing critical information.
- Review the checklist with legal or financial advisors to confirm all requirements are met.
Is notarization required?
Notarization is generally not required for this form. However, certain states or situations might demand it. You can complete notarization online through US Legal Forms, powered by Notarize, using a verified video call available anytime.
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Make edits, fill in missing information, and update formatting in US Legal Forms—just like you would in MS Word.
Download a copy, print it, send it by email, or mail it via USPS—whatever works best for your next step.
Sign and collect signatures with our SignNow integration. Send to multiple recipients, set reminders, and more. Go Premium to unlock E-Sign.
If this form requires notarization, complete it online through a secure video call—no need to meet a notary in person or wait for an appointment.
We protect your documents and personal data by following strict security and privacy standards.
Typical mistakes to avoid
- Neglecting to gather complete documentation for all subsidiaries.
- Overlooking important regulatory approvals or licenses needed for operation.
- Failing to update the checklist with recent business changes or transactions.
- Assuming that all partners have the same information without verifying through the checklist.
Advantages of online completion
- Convenience of accessing the checklist anytime for thorough preparation.
- Editability allows for customization based on specific business needs.
- Reliable format ensures compliance with legal standards.
- Streamlined process to collect and organize necessary information efficiently.
Quick recap
- The Due Diligence List is essential for validating assets during business transactions.
- Complete documentation is crucial for ensuring all parties are informed and protected.
- Using the checklist can help prevent future disputes related to undisclosed liabilities or issues.
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FAQ
Your due diligence should include bank agreements, loans, collateral pledges, warranties, installment sales, distribution contracts, stock purchases, mergers, acquisitions or noncompetition agreements.
A due diligence checklist is an organized way to analyze a company. The checklist will include all the areas to be analyzed, such as ownership and organization, assets and operations, the financial ratios, shareholder value, processes and policies, future growth potential, management, and human resources.
Financial due diligence. Legal due diligence. Tax due diligence. Operational due diligence. IP due diligence. Commercial due diligence. IT due diligence. HR due diligence.
Due diligence is defined as an investigation of a potential investment (such as a stock) or product to confirm all facts. These facts can include such items as reviewing all financial records, past company performance, plus anything else deemed material.
Ask for three references and personally verify at least two. For professional positions, verify that the person has the credentials they listed on their resume. Test their skills to assure they have core knowledge. Psychological testing is important for high stress positions.
Company information. Who owns the company? Finances. Where are the company's quarterly and annual financial statements from the past several years? Products and services. What are the company's current and future products and services? Customers. Technology assets. IP assets. Physical assets. Legal issues.
The purpose of a legal due diligence is to assess the potential risks of a transaction by investigating the obligations and liabilities of the target company.A seller will usually expect a non-disclosure agreement to be signed by the potential purchaser prior to the legal due diligence being undertaken.
Due diligence is a process of research and analysis that is initiated before an acquisition, investment, business partnership or bank loan, in order to determine the value of the subject of the due diligence or whether there are any major issues involved.