Being a potential buyer or investor in an acquisition, merger or investment transaction requires lengthy reviews and examining a lot of documents. This can be a time-consuming process, especially when parties are examining the vast amount of information across a variety of different areas of due diligence, including human capital, financial as well as intellectual property, asset and tax. To avoid confusion and reduce the possibility that certain items are not considered, it is important to create a comprehensive checklist of all the documents to be requested during review.
A thorough due diligence checklist for business can help you find important details, and make sure that every aspect of the review is covered. For example, the human capital element of a review will look at the employees and employees, their salaries and benefits. This could include a breakdown based on the employee’s position and a comparison of salaries of employees in similar roles within their industry or region. The report will also analyze the company’s policies, procedures and practices around hiring, firing, compensation, incentives vacation, sick leave, contracts, and severance.
Many of these areas of due diligence will require input of experts and consultants from outside. It is recommended to establish a timeline to complete the review and establish clear guidelines to avoid delays, miscommunications and duplicate work. A CRM, such as DealRoom can improve the efficiency of this process, by providing a central place to manage all communications, documents and tasks.
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