Due Diligence Checklist - Purchasing a Business.

When you have decided to purchase an existing business regardless of whether the deal is structured as an asset transaction, a stock transaction, partnership or a merger, make sure you know what you are getting into by requiring detailed information from the seller regarding its business operations and finances. The following is a short checklist of information and documents you should review:.

 

When you have decided to purchase an existing business regardless of whether the deal is structured as an real estate tranaction, personal asset transaction, a stock transaction, partnership or a merger, make sure you know what you are getting into by requiring detailed information from the seller regarding its business operations and finances. The following is a short checklist of information and documents you should review:

 

To download the complete document with complete list of details click here.

 

 

 

 

 A. Organization and Good Standing.

•      The Company’s Articles of Incorporation, and all amendments thereto.
•      The Company’s Bylaws, and all amendments thereto.
•      More info in full doc….

B. Financial Information.

•      A schedule of inventory.
•      More info in full doc….

C. Physical Assets.

•      A schedule of fixed assets and the locations thereof.
•      More info in full doc….

D. Real Estate.

•      A schedule of the Company’s business locations.
•      Copies of all real estate leases, deeds, mortgages, title policies, surveys, zoning approvals, variances or use permits.
•      More info in full doc….

E. Intellectual Property.

•      A schedule of domestic and foreign patents and patent applications.
•      A schedule of trademark and trade names.

F. Employees and Employee Benefits.

•      Summary plan descriptions of qualified and non-qualified retirement plans.
•      Copies of collective bargaining agreements, if any.

G. Licenses and Permits.

•      Copies of any governmental licenses, permits or consents.
•      Any correspondence or documents relating to any proceedings of any regulatory agency.

H. Environmental Issues.

•      A list identifying and describing any contingent environmental liabilities or continuing indemnification obligations
•      More info in full doc….

I. Taxes.

•      Federal, state, local, and foreign income tax returns for the last three years.
•      More info in full doc….

J. Material Contracts.

•      Copies of all contracts between the Company and any officers, directors, 5-percent shareholders or affiliates.
•      More info in full doc….

K. Product or Service Lines.

•      A list of all existing products or services and products or services under development.
•      A summary of all complaints or warranty claims.

L. Customer Information.

•      A schedule of the Company’s twelve largest customers in terms of sales thereto and a description of ....
•      More info in full doc….

M. Litigation.

•      A schedule of all pending litigation.
•      A description of any threatened litigation.

N. Insurance Coverage.

•      A schedule of the Company’s insurance claims history for past three years.

O. Professionals.

•      A schedule of all law firms, accounting firms, consulting firms, and .....
  

P. Articles and Publicity.

•      More info in full doc….

 

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