Sample M&A Due Diligence Checklist: Free Downloadable Guide
You’ve decided to acquire a business. One of your most important tasks during the transaction process will be to diligence that business.
Due diligence is the comprehensive appraisal of a business undertaken by a prospective buyer or investor before they sign the definitive agreement, and is usually performed to lay out its assets and liabilities and evaluate its commercial potential. It should be performed before any major financial transaction including (but not limited to) mergers, acquisitions, equity investments, and debt investments.
However regardless of whether you’re a financial sponsor or strategic acquirer making an investment, or a business owner preparing materials for your own sale or fundraising, the due diligence process can be exceptionally complex. And while any due diligence process will be lengthy, none is more lengthy or complex than the kind that accompanies a merger, buyout, or acquisition.
Consider a business valuation EARLY in your process; it answers the question “What is my business worth?”
We’ve decided to create this sample M&A due diligence checklist in order to guide you through your diligence process.
It was written for the acquirer in a standard M&A process, but is designed to act as a guide whether you’re an acquirer, investor, or advisor from the buyside, or an advisor or company owner raising funds or selling a business from the sellside.
This checklist goes over the general list of items and documents that every buyer and investor should to review and, as necessary, investigate. However not every question will be necessary for your acquisition or investment process, and, on the flipside, it’s not exhaustive (e.g., it doesn’t include every IT due diligence or values due diligence question). Specifically, you may want to add industry-specific questions for sizable acquisitions, while far fewer will be needed for asset purchases. Finally, it’s only a general guide, and should not be used as your sole resource in the process.
During 3 decades of M&A service, Jeff Adam has successfully completed the sale of over 825 businesses and advised or completed 1,000’s of business valuations and exit plans. An entrepreneur in his own right, Jeff has started and grown 12 companies in fields including international finance, B2B services, business valuation, construction, screen printing, Mergers & Acquisitions, engineering, and manufacturing. Jeff has donated his time as a distinguished speaker at numerous national & international conferences since 1977 covering topics such as environmental services, engineering, media, craft breweries, exit planning, business valuation, charitable giving, management, business brokerage and M&A fields.
Jeff is President of Adam Noble Group, LLC, a national M&A Advisory firm, professionally valuing and confidentially selling profitable businesses owned by exit-motivated business owners to qualified strategic, corporate, private equity, partners, management, and first-time buyers. Jeff establishes rapport, builds trust, and educates business owners in the steps to meet their goals as they prepare and achieve the discreet, confidential exit of their business. Jeff exclusively represents sellers of $1M-50M value enterprises and endeavors to transfer their businesses to qualified, capable acquirers who will build upon the seller’s vision, goals, culture, and history. Jeff maintains lifelong repeat and referral relationships with sellers, their acquirers, and service providers.
Adam Noble Group has multiple M&A and business broker specialties: Manufacturing, Defense Industry, Oilfield services, Construction trades, Craft Breweries, Partnership Buyouts, Manufacturing, Service, and Wholesale Distributors.
Our M&A advisors and business brokers are all multi-industry entrepreneurs who have successfully exited their own companies. Jeff has walked in your shoes! Jeff wants to put the BIGGEST CHECK of your life in your pocket! Please contact Jeff, and he will confidentially answer all your questions.
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