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    Due Diligence Report Format Sample

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    Aashna Sehgal
    The document provides a sample format and contents for a due diligence report. The due diligence report summarizes findings from research conducted prior to a business transaction, such as a merger or acquisition. It includes sections on corporate structure, financial data, business operations, management, risks, and provides recommendations. The report is an internal document that is required for executives to evaluate and approve the transaction.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Due Diligence Report Format Sample

    Uploaded by

    Aashna Sehgal
    607 views5 pages
    The document provides a sample format and contents for a due diligence report. The due diligence report summarizes findings from research conducted prior to a business transaction, such as a merger or acquisition. It includes sections on corporate structure, financial data, business operations, management, risks, and provides recommendations. The report is an internal document that is required for executives to evaluate and approve the transaction.

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    The document provides a sample format and contents for a due diligence report. The due diligence report summarizes findings from research conducted prior to a business transaction, such as a merger or acquisition. It includes sections on corporate structure, financial data, business operations, management, risks, and provides recommendations. The report is an internal document that is required for executives to evaluate and approve the transaction.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    607 views5 pages

    Due Diligence Report Format Sample

    Uploaded by

    Aashna Sehgal
    The document provides a sample format and contents for a due diligence report. The due diligence report summarizes findings from research conducted prior to a business transaction, such as a merger or acquisition. It includes sections on corporate structure, financial data, business operations, management, risks, and provides recommendations. The report is an internal document that is required for executives to evaluate and approve the transaction.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 5

    DUE DILIGENCE REPORT FORMAT AND SAMPLE

    The Due Diligence Report includes a format and sample of information used in business
    transactions such as a merger or acquisition, partnership, investment, etc. The report requires
    research carried out prior to a financial transaction to assess commercial and legal risks, as well as
    opportunities. The findings of the investigation and analysis are summarized in a report which is
    known as the Due Diligence Report. This report is sent as an internal document to member of the
    executive team who are evaluating the transaction and is a requirement for closing the deal. The
    Due Diligence Report focuses on corporate structure, company’s financial data, information
    about business operations and sales and marketing analysis. it also includes data about
    management staff, risks, legal issues, etc. Additional categories should be added as necessary
    depending of the nature of the due diligence in question.

    DUE DILIGENCE REPORT

    Index of Contents

    1. Management Summary
    2. Corporate structure and Ownership
    3. Financial
    4. Business Plan
    5. Sales and Marketing
    6. Assets
    7. Management and Staff
    8. Operations
    9. Legal
    10. Risks
    11. Other Observations
    12. Recommendations

    1
    1. MANAGEMENT SUMMARY

    Include key findings of Due Diligence investigation.

    2. CORPORATE STRUCTURE AND OWNERSHIP

    Objectives: Identify if there are any issues with the ownership structure that may cause
    us difficulties/conflicts of interest in the future, or be prejudicial to our shareholder
    interest.

     What Corporate Structure is used

     Who are the shareholders

     List by shareholding

     Identify who are:

     Full time active in the company


     Non full-time but active investors
     Passive Shareholders
     Corporate Shareholders

    Identify shareholder objectives for all major shareholders. If Corporate shareholders


    exist, what is objective of shareholding.

    Depending on split may be necessary to speak with all principal shareholders.

    Identify any possible conflicts or difficulties with different shareholder interests.

    Are there any subsidiaries?

    If these exist, how are they managed?

    Documents to be provided

     Articles of Association and Memorandum, together with a copy of the


    company’s latest annual return to Company’s House. Copies of all
    shareholder agreements still in force.

     Current share register and details of different classes and rights, if applicable.

     Copies of all shareholder agreements still in force.

     List of proposed new investors with likely amounts to be invested and any

    2
    conditions applicable.

     Details of all outstanding share options, warrants, conversion rights or other


    agreements that may result in further shares being issued.

     List of any subsidiaries with percentage owned, purpose of company, name of


    director(s), and latest sales turnover, net profit and balance sheet.

    3. FINANCIAL

    Objective: Ensure we have a true and accurate picture of the financial state of the
    company, and realistic projections going forward

     Examine the accounts that exist. Are there any previously documented
    business plans with which to compare them? If not, why not?

     What are the key revenue items for the business? How reliable are they going
    forward?

     What are the key costs of the business? How are these likely to evolve over the
    next 3 years?

     How might they be reduced if circumstances required it?

     What are the assets on the balance sheet? If there are any unusual items, how
    is the value arrived at?

     Look at the debtors register. Is this company having difficulty


    getting aid? if so, why? Has the company filed all necessary tax
    returns (TVA/VAT, Profit related Tax etc).

     Is the company benefiting from any government grants/loans etc., and if so on


    what terms

    Documents to be provided

     Copies of the last three audited (or provisional) annual accounts.

     Sales and estimated net profits during the current financial year to date and
    an estimated balance sheet at the latest available date. Details of any
    material changes since such balance sheet.

     Details of any loans, overdrafts or other indebtedness currently outstanding.

     Documentation relating to any government grant/aid or loans.

    3
     Projections for the current full financial year and four further years,
    including sales turnover, gross margin, overhead costs, EBITDA, net cash
    flow and year end cash balance.

     Contact details of the company’s accountants and authority for us to speak to


    them about the company’s financial affairs.

     Name and contact details of the company’s principle bank and authority for
    us to contact them to obtain a standard bank reference.

     Details of any current or anticipated legal action or tax enquiries affecting the
    company. Name of legal adviser and permission to speak to them if any legal
    action pending.

     List of premises occupied, leased or owned by the company with rents payable
    and dates of lease expiry or break clauses.

     Summary of principle insurance policies.

    -------------------------------------------------------------------------------------------------------------------

    This is a sample of the Due Diligence Report Format.

    To get more information about this document click here:

    DUE DILIGENCE REPORT

    4
    BUSINESS CONTRACTS & AGREEMENTS TEMPLATES

    BUSINESS CONTRACTS
    • Strategic Alliance Agreement • Supply Contract
    • Joint Venture Agreement • Service Provider Contract
    • Manufacturing Contract • Consulting Services Contract

    COMMERCIAL CONTRACTS
    • Exclusive Distribution Contract • Sales Commission Contract
    • Commercial Agency Contract • Real State Agent Agreement
    • Sales Representative Agreement

    LICENSE & FRANCHISE CONTRACTS


    • Trademark License Agreement • Franchise Contract
    • Technology Transfer Agreement • Master Franchise Contract
    • Software License Agreement

    CONFIDENTIALITY CONTRACTS
    • Confidentiality Contract between • Confidentiality Contract for Employees
    Companies • Confidentiality Contract for Consultants
    • Confidentiality Contract for Product or and Contractors
    Business Idea

    SHAREHOLDERS & INVESTORS AGREEMENTS


    • Shareholders Agreement for a New • Business Plan for Investors
    Company • Business Proposal for Investors
    • Investors Agreement

    BUSINESS SALE AND PURCHASE AGREEMENTS


    • Business Sale and Purchase Agreement • Disclosure Letter for Selling a Business
    • Share Sale and Purchase Agreement • Letter of Intent to Purchase a Business
    • Broker Agreement for the Sale of a Business • Due Diligence Report
    • Broker Agreement for the Sale of Shares • Due Diligence Checklist
    • Confidentiality Agreement for Selling a Business • Legal Due Diligence

    Online Purchase
    www.globalnegotiator.com
    info@globalnegotiator.com

    https://www.globalnegotiator.com/en/business-contracts

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