Secure your investments by using a due diligence checklist and correctly assess the value of a company.
This due diligence checklist can be used as a guide when conducting due diligence on a company with potential for investment.Download template
An operational due diligence template is used to review the operations of a business: customer patterns, competitors, business marketing and analysis, and perception.Download template
This financial due diligence checklist can be used by accountants or financial advisors to assess the financial standing of a business.Download template
Use this technical due diligence checklist for commercial properties to list all factors and requirements to help you make an acceptable investment decision.Download template
Investors, business owners and consultants use a due diligence check list when analysing a company or organisation they wish to acquire either through purchase, merger or another method. This type of checklist helps to ensure that the final decision is based on a thorough examination of all aspects of the business. It is also used to identify red flags and determine whether the current value of a company is a sound investment.
Investors and consultants must examine key aspects of a company to determine whether the investment is worthwhile. This includes finding red flags that may harm profitability. The following key aspects should not be missing from any due diligence checklist template:
Public perception can affect the profitability of a company. For due diligence, it is important that the due diligence template includes what the media, competitors and the target market have to say about the company.
There are three types of due diligence, namely 1) legal, 2) financial and 3) commercial. All help to provide the right information to thoroughly evaluate the business, assets, capabilities and financial performance of the company of interest.
The legal due diligence is the examination and revision of legal documents and contracts. This includes the examination of areas such as:
Financial due diligence includes the verification and evaluation of the company's financial documents. It covers areas such as:
Commercial due diligence is the fundamental understanding and investigation of the market in which the target company operates. This includes activities such as discussions with customers, analysis of the business plan and assessment of competitors.
For due diligence, a large number of company documents must be reviewed in the shortest possible time in order to be able to assess the viability of a company for an investment, merger or takeover. Lumiform, the powerful, mobile auditing application, helps entrepreneurs and consultants conduct effective due diligence by providing the following benefits:
1. Convenient highlighting of results
2. Digital recording
3. Secure information