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.
- 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..?
- 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?