Check Lists:Management/Due diligence Business acquisition

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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?