Buying Or Investing In A Business? Make Sure You Use A Professional Due Diligence Checklist
The acquisition due diligence checklist comes in very handy as an organizing tool
though not every item contained in it will apply for every given situation. Some items will be added while others may be omitted because an acquisition is different in different conditions and must be treated as unique.
The acquisition due diligence checklist could begin with the corporate organization matters that will include the certificate, articles of incorporation of the target company, bylaws of the company, minutes of meeting of the company as well as list of jurisdictions in which the company is qualified in the form of a foreign corporation, ownership breakdown and a few other points that can be relevant to a particular instance of the acquisition due diligence checklist.
It shall also contain the general business information that includes, amongst other points, current business plan, organizational charts as well as detailing the management's responsibilities and a list of company's ten biggest suppliers as well as the value in dollars of the product supplied. In addition, it must contain the last two years' payment terms as also every contract, agreement or instrument pertaining to the company's business. And, there can also be other points mentioned that are pertinent to the acquisition due diligence checklist in each particular instance.
The acquisition due diligence checklist shall also hold information regarding financial matters that includes having copies of annual accountant reports pertaining to the company, mention of any adjustments to operating income and a list as well as detailed explanation thereof, the previous years' tax returns, monthly financial statements, costs by functional areas and more.
Also included in the acquisition due diligence checklist is a description of properties as well as leases that include real property, summary description of each branch, office as well as other company facilities whether leased or not that is used or occupied by the company either wholly or partially, name of landlord, address, terms of lease in summary form as well as details of renewal and purchase options as well as amount of rent to be paid and more.
There will also be mention of regulatory matters such listing of federal as well as state and local government as well as permits from regulatory agencies as also approvals, consents etc., and listing of and descriptions of any reports that relate to the inspections or investigations regarding the business or the facilities of the business by federal or estate or local government agencies.
There should also be mentioned scope of activities, certain contracts and arrangements, management and employees, insurance, litigation and claims, management information systems, and also issues related to the environment.
The acquisition due diligence checklist is readily available in the market and finding one should not pose any problem, as there are many vendors who specialize in such documents and for a few dollars one may obtain completely researched and well-formed acquisition due diligence checklist. There is no need for researching and creating one from scratch as buying these documents provides an avenue for obtaining comprehensively created solutions that have had experts draft them and they are suited for all manner of use. Spending a few dollars, one could reap great benefits, as there is plenty to be saved in terms of time, money and cost as well as being tailored to suit individual requirements.
by: Wade Anderson
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Buying Or Investing In A Business? Make Sure You Use A Professional Due Diligence Checklist