There are so many things to consider at the outset of starting a business or partnership that it can be completely overwhelming. It's important to dot every ''i'' and cross every ''t'' to ensure that your new venture will be highly successful.
Starting a company or being part of a merger or acquisition carries many opportunities. It also carries much risk. It's crucial to consider all facets of a business, including the inherent problems it brings with it. It's important to consider the company's debts, liabilities, problem contracts, litigation risks, intellectual property risks and much more. Acquiring a private company carries even more risks because they haven't stood the test of the markets and buyers have less access to information from public sources.
Either way, it's not a process you want to hurry through, regardless of how attractive the offer may be. The best and most secure way to ensure due diligence is to set up a virtual data room with Diligent Corporation. Setting up your virtual data room and your mergers and acquisitions due diligence checklist are the first steps in tackling mergers or acquisitions.
At a minimum, the following 20 items should be on all companies' merger and acquisition due diligence checklist:
20 Items That Should Be on Every Due Diligence Checklist
- Financial Matters
- Technology and Intellectual Property
- Sales and Customers
- Strategic Fit With Buyer
- Material Contracts
- Managerial or Employee Problems
- Litigation
- Tax Matters
- Antitrust or Regulatory Matters
- Insurance
- General Corporate Matters
- Environmental Issues
- Related Party Transactions
- Governmental Regulations, Filings and Compliance With Laws
- Property
- Production-Related Matters
- Marketing Arrangements
- Competitive Landscape
- Online Data Room
- Disclosure Schedule
Media Highlights
Environmental, social and governance (ESG) issues have become more complex and multifaceted than ever before. At the same time, ESG continues to ascend on board and leadership agendas.
In this buyer’s guide, we explore what a market-leading ESG solution should look like and highlight the key areas organisations should be prioritising as they embark on their search.