What is a Due Diligence Report?

Elements of Due Diligence Report

- The due diligence report summarises the data gathered throughout the due diligence process.

- Due diligence is divided into three categories:

1. Business Due Diligence

2. Financial Due Diligence

3. Legal Due Diligence

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A due diligence report may include the below elements:

– A statement explaining the research topic

– Corporate reports, legal records, transaction copies, market research, and other research documents

– SWOT Analysis summarises the proposal’s strengths, weaknesses, opportunities, and threats

– Any liabilities, debts, or financial responsibilities may alter any commercial transaction’s conditions

– Statistics and other information, such as surveys, valuation studies, inspections, market research, and, on occasion, public input.

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Drafting a Due Diligence Report

- Below are questions that must be addressed while writing a due diligence report:

1. Who is the intended audience?

 2. What is the report’s purpose?

3. What are the most important factors of decision-making?

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Sections of a Due Diligence Report

- Financial Information

- Corporate Records

- Indebtedness

- Employment and Labor

- Real estate

- Agreements

- Supplier and customer information

- Legal

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