Being an investor or buyer in a merger, acquisition or investment deal means undertaking extensive reviews and scrutinizing loads of documents. This can be a time-consuming process, especially when parties are reviewing large amounts of information in a variety of different due diligence fields like intellectual property, financial and tax. To avoid confusion and decrease the chance of missing important items, it is essential to compile a complete list of all materials that must be requested during the review process.
A thorough business due diligence checklist will help a party to identify crucial information and ensure that all aspects of the review are taken care of. For example, the human capital element of a review would look at the company’s staff as well as employees, their salaries and benefits. This can include a breakdown of employees by position and a comparison of salaries with the wages of employees in similar positions within their industry and region. The report will also analyze the policies, procedures, and procedures for hiring, firing, remuneration, incentives sick leave, vacation contracts and the severance process.
Many of these due diligence areas will require the input from specialists and external consultants. It is a good idea to establish a timeline for the review’s completion and then define clear guidelines to avoid delays, miscommunications, and duplicate work. Using a CRM system like DealRoom can improve the efficiency of this process by providing a central location for all communications, documents and tasks that need to be tracked.