A Sample Acquisition Due Diligence Checklist

/in , /by Al Statz

In privately-held business acquisition transactions, as soon as a letter of intent or contingent purchase agreement has been negotiated, the buyer’s in-depth due diligence begins.  To kick-start this phase of the transaction, the buyer requests from the seller all of the information that they need to conduct their investigations. Once the buyer is satisfied, the transaction proceeds to the closing phase.

Due diligence document requests vary greatly in length and content, depending on the type and complexity of the business, the structure of the transaction, and the buyer’s plans for the business.

Download Sample Small Business Acquisition Due Diligence Request List

This sample buyer due diligence checklist is a generic list for the acquisition of a small privately-held business. It is for information purposes only. Some of the items listed will not apply to your specific business acquisition and other critical requests will be missing. Please do not use this as an actual request list!

I can’t overstate how important it is to obtain competent legal, financial, tax and other specialized counsel to assist with your due diligence investigations and requests for information. A skilled M&A broker can organize and manage the due diligence process to keep the transaction participants in sync and the deal on track. Often, the broker sets up a virtual data room to which the seller team can upload due diligence documents and from which the buyer team can view and download.

Due diligence is a critical step in every business acquisition. For more information about the due diligence process when selling, merging or acquiring a California business, you can reach Al Statz at 707-781-8580 or alstatz@exitstrategiesgroup.com.