Who has posted the best due diligence checklist online?
July 31, 2024
by a lender from University of Virginia-Darden - Darden School of Business in Charleston, SC, USA
I am under LOI on a niche business and could use a great DD checklist - any help appreciated?
from University of Toronto in Toronto, ON, Canada
Due Diligence is a risk management exercise, so the content, breadth and depth of the DD process is a function of 2 variables: (1) the risk tolerance of the party conducting the DD; and (2) the particular characteristics of the target and its industry that create potential risk points.
DD is the most important, but also the most misunderstood and neglected, part of the acquisition process. DD is part art and part science; part qualitative and part empirical. It is as much about what information is not available in the target's records, as about what information is available. It's about knowing when things don't feel right. Good DD practitioners read between the lines and appreciate the importance of what isn't being said as much as what is being said,
Unless the acquisition is small scale, simplistic in structure, and in an industry where you personally have operating/financial expertise, don't rely on doing DD yourself - get a professional to do it. The expense of professional DD pales in comparison to the post-closing costs of DD errors and omissions.
I am an expert in, and have written and been published extensively on the topic of Due Diligence, If you'd like the benefit of professional advice and guidance, don't hesitate to get in touch at redacted .
[Thanks for including me, ^redacted.]
from Georgia State University in Atlanta, GA, USA