Follow Us:

M&A Due Diligence Checklist

Home M&A Due Diligence Checklist

Quick Contact

    Need Help?

    Please Feel Free To Contact Us. We Will Get Back To You With 1-2 Business Days.

    [email protected]
    +65 9730 4250

    M&A Due Diligence Checklist

    M&A Due Diligence Checklist: A potential investor can quickly learn about a business when completing an investment or transaction when due diligence is completed. Due diligence is a significant step in every investment or transaction, and its importance in the context of mergers and acquisitions can’t be understated.

    You need every piece of information that will enable you to successfully carry out your investigation about a deal you want to finalize, whether you are a seller or a buyer. Professional consultant have a detailed M&A due diligence checklist researched and created before structuring the agreement to organize this information.

    Valuation on REITs, Patent Valuation | Growth Equity Valuation, Valuation Of Asset Management Company

    Due Diligence

    Due diligence is a detailed business appraisal every wise investor or potential buyer takes before agreeing to invest or buy a company. It is usually the job of an investor’s attorney to review the assets and liabilities of the business you want to buy.

    The attorney also examines the company’s business relationships, operations, and structures. With this information, you can evaluate if the deal will yield much in commercial potency and ensure you correctly buy the merger and acquisitions.

    If you are the business owner, your lawyer will give the investor or buyer the necessary documents and assist in managing the process. This will help you go on with your business operation and not be overwhelmed by document requests from the buyer.

    M&A due diligence checklist considerations

    There is uniqueness among every M&A. The importance of due diligence required on a particular subject by a company is not the same as other companies. However, due diligence matters are a must and included in transactions.

    The following are the areas that are always addressed on every M&A due diligence checklist:

    1. Taxes
    Tax due diligence is one area that a corporate lawyer checks. They verify if all taxes are current and no tax problems are expected. The historical tax liabilities of a company are checked. Some of the reviewed documents include government audits, notices from local, state, federal, and foreign taxing authorities, transfer pricing and tax sharing agreements, settlement documents with tax authorities, etc.

    2. Material Assets
    Material assets such as the real estate of a company are critical to the M&A transaction. Thus, find the valuation of every asset and check if there is any liability or debt against them. Some of the appraised assets are equipment, technology, real estate, research, and development.

    3. Corporate Structure
    Corporate attorneys carefully review the company’s organizational documents, corporate structure, and records to make sure all are in place. The reviewed papers include the organization chart, warranties, voting and stockholder agreements, incorporation documents, corporate bylaws, restructuring and recapitalization documents, securities holders, etc.

    4. Intellectual Property
    An intellectual property lawyer checks the quality of a company’s intellectual and technology property of a company you want to buy. This lawyer fits their protection, too, and some of the properties reviewed are trademarks, trade secrets, patents, licenses agreements, and copyright.