Due Diligence Checklist for Acquisition
The Master Diligence Checklist is intended to provide an inclusive and wide-ranging list of initial due diligence requests that can be used for any target in any type of transaction.
Suitable for use in any transaction
Initial requests solicit general information to provide a broad overview of the target and its business and operations
Playbooks are customizable to meet the specific circumstances of your deal
Create a Diligence Process that is Efficient for both Buyers and Sellers
Due diligence is an important part of any deal. It allows a buyer or investor to ask questions to learn about a company in order to evaluate a potential transaction or investment. Regardless of whether you are the buyer or seller, it is important to stay organized throughout the due diligence process
. Buyers need an efficient system to manage their requests and track seller responses. Sellers need an effective way to manage their workflow to ensure they are providing timely and responsive answers to buyer questions. In order to create a smooth and efficient process for all parties, DealRoom has created template due diligence request lists. Sellers can use these templates to get ahead of the game by anticipating buyer requests and preparing a professional, well-organized legal due diligence software
. Buyers can save time and money by utilizing the templates to prepare their initial diligence requests.
What Questions does Due Diligence Checklist Include
Though every deal and every diligence process is different, our templates are intended to cover typical topics and requests that are relevant in most transactions. Our templates include requests in categories such as
health and safety
What Is Due Diligence?
Due diligence is a critical aspect of any deal that begins very early in the process and can continue right up until closing. During due diligence, the potential buyer asks questions and requests documentation from the seller that helps the buyer understand the target company and its business. These requests are usually general to start and become more specific as the buyer develops a greater understanding of the target. Buyers use the information provided by the seller to evaluate the opportunities and risks associated with the potential transaction. It is important for sellers to stay organized throughout the process. Buyers often submit thorough, detailed request lists that require input from numerous members of the seller’s deal team.
What is a due diligence checklist?
As the name implies, a due diligence request list is a list of questions and requests for information and documentation that a buyer submits to a seller in order to learn about the target company, its business and its operations. The initial diligence request list tends to be broad and typically includes an extensive list of questions covering a wide range of subjects. This allows the buyer to gain a broad understanding of the target company and identify key issues that can be investigated and considered more closely. Because every deal is different, due diligence request lists have to be tailored to meet the needs of the buyer and address the unique circumstances of your transaction. However, there is a variety of fundamental requests that are relevant in most deals. These are the types of requests that our templates are designed to address.
Key considerations when using our template m&a due diligence checklist
Our templates are drafted to provide an inclusive and wide-ranging list of initial due diligence requests. However, the templates, as well as the information contained therein, are not legal advice. They are not complete, and they are not specific to your transaction. The templates are designed to illicit general information from the seller that will provide the buyer with a broad overview of the target and its business and operations. You should review any template before using it, and it may need to be modified to ensure that it is suitable and relevant to your circumstances. Information provided by the seller will likely trigger additional questions that focus on specific aspects of the target’s business and issues identified during the due diligence process.
Are the requests in the templates comprehensive?
No. Our templates are drafted to include typical requests that are relevant in most transactions. However, every deal and every target company is unique. Before utilizing any template, it is important that you review it with the help of your legal and other professional advisors to ensure that the requests are complete and tailored to the specific circumstances of your deal.
Easily Execute Due Diligence in DealRoom
The Master Due Diligence Checklist Template can easily be imported into DealRoom. Here’s how to use the template with DealRoom:
How to use the template with DealRoom:
Download the template from DealRoom’s website
Open a room within DealRoom
Go to the Requests tab and select “import”
Import the downloaded template
The Requests tab is automatically populated with the requests from the due diligence template. Users can begin assigning, adding to, and completing due diligence requests.