Private Equity Due Diligence Checklist

The Private Equity Due Diligence Checklist provides a framework of initial due diligence requests. Data required ranges from general information about the company and their culture to conducting more in-depth surveys on internal processes.

Private Equity Due Diligence Template

The Private Equity Due Diligence Checklist provides a framework of initial due diligence requests. These are tailored specifically to transactions involving private equities or privately-owned companies.

  • Most suitable for transactions that involve private equities
  • Initial requests help prompt basic information for a general overview of the target company
  • Playbooks may be customized to accommodate your team’s or deal’s unique needs
Download Template
Start Due Diligence With DealRoom
Start Integration With DealRoom

Private Equity Due Diligence Template

The Private Equity Due Diligence Checklist provides a framework of initial due diligence requests. These are tailored specifically to transactions involving private equities or privately-owned companies.

  • Most suitable for transactions that involve private equities
  • Initial requests help prompt basic information for a general overview of the target company
  • Playbooks may be customized to accommodate your team’s or deal’s unique needs

Private Equity Due Diligence Checklist

The Private Equity Due Diligence Checklist provides a framework of initial due diligence requests. Data required ranges from general information about the company and their culture to conducting more in-depth surveys on internal processes.

Download Template
Start Due Diligence With DealRoom
Start Integration With DealRoom

What are the benefits of using this template?

Excel Export/Import

Export this template to Excel with just one click. Also, Import your Excel spreadsheet easily - turn it into a nice dealroom.net board.

Integrated with Data Room

The tasks tracker is integrated with the virtual data room, so you can start collecting documents right away.

Easy Tracking

Track your projects progress from start to finish, know if a task is stuck or behind schedule.

Eliminate Excel trackers, emails and disconnected tools with DealRoom

Private Equity Due Diligence Template

The Private Equity Due Diligence Checklist provides a framework of initial due diligence requests. These are tailored specifically to transactions involving private equities or privately-owned companies.

  • Most suitable for transactions that involve private equities
  • Initial requests help prompt basic information for a general overview of the target company
  • Playbooks may be customized to accommodate your team’s or deal’s unique needs

What Tasks does the 

Private Equity Due Diligence Checklist

 Include

Company/Business Model

Understanding the target company and its business model is the foundational phase of the diligence process. It helps you glean an over-arching understanding of their potential investment. Data required ranges from general information about the company and their culture to conducting more in-depth surveys on internal processes.

ITEMS IN COMPANY/BUSINESS MODEL DUE DILIGENCE INCLUDE:

  • Gather general company information -- Name, Mission, Values, etc.
  • Examine corporate bylaws
  • Identify corporate identity and culture
  • Evaluate business model
  • Pinpoint and assess key internal processes

Legal/IP

Legal/IP due diligence helps you deduce whether the target company is sound and complaint or riddled with statutory issues. Additionally, evaluating the target company’s intellectual property (IP) will aid in estimating overall business value. Information required often include various contracts, IP documentation, litigations, and licenses and permits.

ITEMS IN LEGAL/IP DUE DILIGENCE INCLUDE:

  • Review labor/unionization relations and general employee contracts
  • Examine and assess applicable intellectual property (IP) documentation -- patents, copyrights, trade secrets, etc.
  • Review lease and property agreements
  • Assess supply and distribution contracts
  • Scrutinize current collateral pledges, security agreements, indentures, and mortgages
  • Investigate current/past disputes and litigations
  • Identify governmental regulatory or administrative orders
  • Assess governmental licenses & permits

Finance

Auditing the target company’s financial situation is an integral factor in valuing a company. Financial due diligence brings validity to the confidential information memorandum (CIM) and helps forecast potential financial risks. The documents required include audited/unaudited financial statements, tax documents, sales projections, and long-term debt agreements.

ITEMS IN FINANCIAL DUE DILIGENCE INCLUDE:

  • Audit audited/unaudited financial statements
  • Comprehensive audit of tax statements and practices
  • Inspect historic and projected sales
  • Scrutinize financial projections
  • Assess debts and asset liquidity
  • Inspect promissory notes and loan agreements

HR

Human resources play a key role in an integration’s ultimate success. Examining HR practices and the target company’s people will help you understand the company culture, procedures, and indispensable personnel. Information collected org charts, benefits and compensation packages, employee contracts, and performance appraisals.

ITEMS IN HR DUE DILIGENCE INCLUDE:

  • Evaluate the organizational structure and upper management
  • Audit and evaluate HR policies and practices
  • Evaluate HR metrics and statistics
  • Scrutinize benefits and compensation packages
  • Scrutinize pension and retirement plan options
  • Review employee agreements and contracts -- employee, compensation, collective bargaining, severance
  • Assess Human Resources Information System (HRIS)
  • Review performance appraisals
  • Pinpoint key personnel
  • Create an organizational restructuring strategy

Property, Plant, & Equipment

A company’s intangibles can be a costly investment. Appraising a company's property, plants, and equipment will help safeguard against unforeseen expenses for faulty assets.  Data required includes asset policies, depreciation methods, and physical inspections.

ITEMS IN PROPERTY, PLANT, AND EQUIPMENT DUE DILIGENCE INCLUDE:

  • Evaluate ICT infrastructure and processes
  • Assess fixed asset policies and depriciation methods
  • Appraise current machinery and equipment

Environmental

Hidden environmental and safety liabilities can result in thousands of lawsuits and fines. Verifying the target company’s compliance will protect against headaches and unnecessary expenditures down the line. Documents required include accident histories and material safety data sheets.

ITEMS IN ENVIRONMENTAL DUE DILIGENCE INCLUDE:

  • Review safety hazards and on the job employee accident history
  • Inspect Materials Safety Data Sheet (MSDS)
  • Appraise the overall environmental impact of the company

Market/Competition

After investing in a company, it would be devastating to find out their product, service, or idea is a complete flop. Evaluating the company’s market and competitive scape offers insight on the investment’s viability and long-term success. Items required include information on the current market, risks, trends, and competitors.

ITEMS IN MARKET/COMPETITION DUE DILIGENCE INCLUDE:

  • Identify and evaluate current market
  • Conduct SWOT analysis
  • Catalogue key competitors
  • Pinpoint market trends and risks

FAQ

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.

What Questions Does the Master Due Diligence Questionnaire Include?

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 m&a due diligence template

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 elicit general information from the seller that will provide the buyer with a broad overview of the target and it’s 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 template comprehensive?

No. Our Due Diligence Checklist is 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.

How to use the template with Dealroom

  • Start 14-day Free Trial of DealRoom and sign-up
  • Select a Master Due Diligence Template while creating a new room
  • Start assigning, adding to, and completing due diligence requests with needed documents by uploading them into the built-in virtual data room. The Requests tab is automatically populated with the requests from the due diligence template.

Can I change requests in this checklist or add new?

Every M&A process is different. Downloaders are urged to make these checklists their own by changing the providing information to better fit their needs.

Does this questionnaire provide all the necessary integration information?

This checklist was created by and for M&A professionals. It includes a comprehensive starting point for the integration process. However, every deal is different and may require additional requirements and tasks.

How to use this template with DealRoom?

  • Start 14-day Free Trial of DealRoom and sign-up
  • Select an Integration Template while creating a new workspace
  • Start planning, assigning, adding to, and completing integration tasks. The Requests tab is automatically populated with the tasks from the integration template.

Key considerations when using our m&a due diligence template

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 elicit general information from the seller that will provide the buyer with a broad overview of the target and it’s 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 template comprehensive?

No. Our Due Diligence Checklist is 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.

How to use the template with Dealroom

  • Start 14-day Free Trial of DealRoom and sign-up
  • Select a Master Due Diligence Template while creating a new room
  • Start assigning, adding to, and completing due diligence requests with needed documents by uploading them into the built-in virtual data room. The Requests tab is automatically populated with the requests from the due diligence template.

More Templates

M&A Press Release Template

Flow of Funds Template

Manufacturing Due Diligence Checklist

Try DealRoom templates

Signup for DealRoom

Download Template

*All fields are required