Every company faced with a significant transaction or deal will be challenged with the process of due diligence. Unfortunately, too many companies wait until a potential acquirer, partner or investor is at the door before focusing on the daunting task of assembling due diligence documents. The resultant “fire drill,” coupled with the resource-intensive effort of executing the transaction according to the rigorous due diligence checklist, can increase the risk of incomplete disclosure, drive up direct and indirect costs, and result in missteps that damage the deal. The best approach is to begin the process as far in advance as possible, consult with experts to develop a targeted M&A strategy along with the executable due diligence checklist, and put it to the test before entering the market.
Ideally, it should be possible to have the materials listed in this eight-page checklist organized in a virtual data room for due diligence document review.