Check Lists:Management/Due diligence Business acquisition

Due Diligence and Business acquisition checklist
This check-list may be used of due diligence and acquisition of smaller business operations. Note that this is a check list - not a prioritized list!


 * Sale and marketing
 * Evaluation of customer database quality
 * Evaluation of reputation in market (Company name /domain name ).
 * Is there any ongoing customer claims?
 * Any other legal cases?
 * How much sale is only related to the current management?
 * Evaluation of any part of the sale related to too high marketing cost?
 * Evaluation of Technology level Physical and staff education level.
 * Staff
 * Are the staff well paid?
 * What is the cost of reducing the size of staff?
 * Evaluate the hidden pension cost due in future to the staff.
 * Other staff qualities


 * Evaluation of physical values (remember to include software licences).


 * Evaluation of stock
 * Has it any real value?
 * How to prove that it is not obsolete?


 * Are the supplier agreements fair and of any value?
 * What is the cost of the required service level?


 * Business procedures
 * Are they fair to the business units?
 * Is there any project accounting?
 * Is there an implemented quality management system - Is it working?
 * Is there an implemented project management system..?


 * Accounting
 * What is the quality of the accounting procedures.
 * What special events has enhanced the results over the last 24 months?


 * Evaluation of Business software: Is it standard systems or custom made that will be very costly to maintain.
 * Why is the Business for sale?