Due Diligence Checklist for Acquisitions
A phased diligence framework with clear decision gates. Review financials, operations, customers, and legal exposure systematically and catch deal-breaking issues before you are too deep to walk away.
Free download, no commitment required
Phase 1
Financial Foundation
Gate: Financial model acceptance
Phase 2
Operational & Customer Risk
Gate: Revenue retention confidence
Phase 3
Legal & Comprehensive
Gate: Proceed to purchase agreement
Why This Approach Works
Find problems before you commit
Phased Approach
Phase 1, 2, and 3 structure with clear decision gates to manage risk and momentum.
Risk Identification
Catch financial, operational, legal, and customer risks before you are too far in to walk away.
Decision Framework
Clear go/no-go criteria at each checkpoint to make confident decisions at every gate.
The Framework
Three-phase diligence structure
Phase 1
Financial Foundation
Quality of earnings, revenue composition, EBITDA quality, working capital, and historical cash flow. Understand the business economics before going deeper.
- 3-year audited financials review
- Quality of earnings analysis
- Revenue concentration and trends
- EBITDA quality and adjustments
- Working capital requirements
Gate decision: Financial model acceptance
Phase 2
Operational & Customer Risk
Customer concentration, revenue at-risk, operational dependencies, systems infrastructure, and key person risk. Identify concentration issues early.
- Customer concentration analysis
- Customer health and retention
- Contract terms and renewal risk
- Vendor relationships
- Operational dependencies
Gate decision: Revenue retention confidence
Phase 3
Legal & Comprehensive
Legal review, regulatory compliance, litigation risk, IP protection, and employee matters. Confirm no deal-breakers remain before moving to close.
- Contract and agreement review
- Litigation and claims history
- IP ownership and protection
- Regulatory and licensing compliance
- Environmental assessment
Gate decision: Proceed to purchase agreement
For Buyers
Know what you are buying before you close
What Is Included
Complete diligence coverage
- Financial diligence templates
- Customer assessment framework
- Operational risk scorecard
- Legal issue tracker
- Environmental review checklist
- Management assessment questionnaire
- Go/no-go decision criteria
- Integration risk scoring
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