Assuming the role of a potential investor or buyer in a merger, acquisition or investment transaction requires lengthy reviews and examining a lot of documents. This can be time-consuming especially when parties are reviewing large amounts of information in variety of due diligence areas like intellectual property, financial, and tax. To avoid confusion and reduce the risk that items are overlooked, it’s important to make a comprehensive checklist of all the documents to be requested during review.
A thorough business due diligence checklist can help anyone to discover important information and make sure that all aspects of the review are considered. The human capital aspect of a review, for example it will focus on the employees and staff of the business, their wages and benefits. This can include the breakdown of employees by job title and a comparison of wages to those of similar employees within their industry and region. The report will also analyze the business’s policies, procedures and practices for hiring, firing, compensation, incentive programs, vacation, sick leave, contracts, and termination.
Many of these areas of due linked here diligence will require input of specialists and external consultants. It is recommended to establish a schedule for the completion of the review and define clear parameters to avoid delays, miscommunications, or duplicate work. Using a CRM program like DealRoom can improve the efficiency of this process through providing a central repository for all communications, documents, and tasks to be streamlined.