Being a potential buyer or investor in a merger or acquisition linked here deal or investment deal involves extensive review and thorough examination of many documents. This can be time-consuming especially when parties are reviewing large amounts of information across a variety of due diligence areas, such as intellectual property, financial and tax. To avoid confusion and reduce the chance of missing important items, it is necessary to prepare a comprehensive list of all materials that need to be requested during the review process.
A thorough business due diligence checklist will help a party to identify important information and make sure that all aspects of the review are taken care of. The human capital portion of a review, for example will analyze the company’s employees as well as staff as well as their benefits and wages. This may include the breakdown of employees according to post and a comparison between salary to that of people in similar positions within their industry and region. It also will look into the policy and procedures of the company regarding hiring and firing, employee remuneration and incentives vacation and sick leave and any contracts and the severance package.
Many of these due diligence areas will require the input of specialists and external consultants. To avoid delays, confusion and duplication of work, it is a good thing to set an end date for the review. Using a CRM such as DealRoom can aid in this process by providing a central platform for all documents, communications, and tasks to be managed.