Being an investor or buyer in the context of a merger or acquisition or an investment deal is a lengthy process that requires an in-depth examination of a variety of documents. This can be time-consuming especially when parties are reviewing huge amounts of information across a variety of due diligence areas like intellectual property, financial, and tax. To avoid confusion and to minimize the risk that things are not properly considered, it’s important to make a comprehensive list of all documents that need to be requested during review.
A thorough due diligence checklist for business will help you to identify crucial information, and make sure every aspect of the review is covered. For instance, the human capital element of a review can look at the employees and employees, their wages, and benefits. This may include the breakdown of employees by position, and a comparison of wages to those of those in similar positions within their field and region. It also will examine the company’s policies, procedures and practices around hiring, firing, employee compensation, incentives vacation, sick leave, contracts and termination.
Many of these areas of due diligence will require the input of specialists and external consultants. To avoid delays, miscommunications, and duplication of work, it is important to establish an expiration date for the review. Using a CRM program like DealRoom can improve the efficiency of this process through providing a central repository for all communications, documents, and tasks to be handled.