A Due Diligence Report to Serve Your Business Interests

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Due Diligence Report
Due Diligence Report

A due diligence report is written before enacting a business transaction. They are commonly used in business valuation, real estate development, or in sales or acquisition. Due diligence is also done when making capital expenditures, or high-level investments. They may also be used when proposing a merger, introducing or ceasing a product line, or relocating or expanding a business.

Corporate Records

  • State of incorporation and in good standing with the State;
  • Capitalisation and authorised and issued shares of stock and seller of each subsidiary;
  • Articles of incorporation and bylaws;
  • Copies of all correspondence with shareholders and obtain a shareholder list; and
  • Existence of any warrants, options, or other potentially dilutive securities.

Financial Information of a Due Diligence Report

  • Copies of financial statements for the past five years that have been audited, including all notes and management’s discussion and analysis;
  • Copies of correspondence between management and auditors;
  • List of jurisdictions where the seller has filed taxes for the past five years;
  • Tax returns for the past five years;
  • All board of directors’ presentations; and
  • All internally generated financial models and forecasts.


Due Diligence Report
Due Diligence Report
  • Investigate indebtedness or seller and subsidiaries, including loan agreements, notes, mortgages, and security agreements;
  • Review correspondence with lenders demonstrating compliance with financial covenants; and
  • Order uniform commercial code searches with each subsidiary.

Employment and Labour

  • A list and profiles of officers, directors, and management;
  • List of all employees, their job function, department, location, and compensation;
  • Documents detailing any profit sharing, pensions, deferred compensation, stock plans, and other non-salary compensation or benefits;
  • Copies of all employee handbooks, codes of conduct, and policies; and
  • Pending litigation related to labour and employment law.

Real Estate

  • Address and legal description for all real property;
  • Copies of title issuance policies with respect to real property;
  • Copies of all appraisals; and
  • Copies of all studies, site evaluations, and government filings and reports prepared by consultants.

Agreements Included in a Due Diligence Report

Due Diligence Report
Due Diligence Report
  • All agreements entered into by the company and its subsidiaries;
  • All real estate leases;
  • All partnership or joint venture agreements;
  • All marketing, sales, commission, distributor and franchise agreements;
  • All brokerage or investment banker agreements;
  • All customer or client agreements;
  • All licences and subscriptions; and
  • All material contracts not otherwise obtained from this list.

Supplier and Customer Information in a Due Diligence Report

  • List of all material customers, including Rand and volume of sales;
  • List of all material suppliers including Rand and volume of sales; and
  • Correspondence with customers or suppliers related to complaints or disputes.


  • Copies of each report or document filed with government agencies;
  • Descriptions of all litigation, administrative proceeding, and governmental investigation;
  • Copies of all government licences; and
  • Environmental liability assessments and environmental compliance audits.

Contact us to prepare a report for your business merger, acquisition, or sale needs.

Due Diligence Report
Due Diligence Report