Checklist for all DD
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Just wondering if there is a complete checklist of all the necessary DD for all areas of DD that can be used online? Thks
in my opinion, even if you find a DD checklist, it might be useless because very transaction is unique. referring to your inquiry, I have seen numerous of them on the internet during my first month as M&A employee. so, the answer is yes.
I recommend you choose one attorney and auditor and talk to them about this. I see that an initial DD list is always the same for the hired companies, so you could find something useful for your country just talking to them. For other DDs, I would do the same, but focusing on larger companies (which should have more mature processes and questionnaires).
We might be able to find some general DD checklists. However, it needs to be reviewed by the subject matter expert and adjust accordingly to suits the company needs. There might be huge different between the general DD checklist from the detail DD checklist formulated by the subject matter expert.
Hi. We have standard check lists for the basic DD areas, such as legal, finance, etc. However, I think it is practically impossible to have the full DD check lists for every potential area of DD (e.g. environment, intellectual property, government relations, etc.), because it may sound pathetic, but it’s true – each target is unique and you have to adapt your approach in each case.
If you use all the presentations you were listing too, you come up with a pretty good list. Nevertheless you need to adjust the list to your industry and sector.
No checklist is complete as each case is unique. The most important thing is the Commercial Due Diligence people who understands the business and industry. A standard checklist may lead to some wasted efforts following up on matters of little significance if not managed properly.
I agree with Andreas – you can put together a general list, but it won’t include the nuances of your industry. For example, I work in the publishing sector, so diligence needs to include things like prepub investment, plate costs, IP agreements with authors, etc. Those questions simply would not appear on a general DD checklist.
there is a comprehansive check list you can develop but it has be be custimized per each transaction to match the nature of that transaction and how deep you go in the DD.
There are general guidelines available on the internet in regards to buyer and seller when dealign with M&A, however an expereinced M&A team is essential to handle the sale/purchase of an entity.
I think the presentations provide a lot of good info you can use along with some templates found online. I think it’s important to review and customize it to your company though to make sure it’s relevant and hopefully by doing so, you can make each future deal that much easier. Our company had each business unit leader come up with a checklist for their department. For my team, I organized it into sections as Critical, Essential, and Nice-to-Have. Our company wasn’t interested in getting all the info so they could close faster, understanding there is a certain level of risk with that approach so this was the best way for me. Best wishes.
As our company is enhancing our M&A capability, the topic of standardized templates vs the uniqueness of each deal is one that comes up often. I tend to believe that having a template or checklist is beneficial, but should be used as a starting point. Each transaction is unique, but there are also a certain set of activities that are universal and having a template that prevents you from starting from scratch with each deal is definitely beneficial.
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