Investment/ Mergers and Acquisitions (M&A) Due Diligence areas:
- Financial Due Diligence: This covers the review and analysis of the financial performance, financial statements, tax records, and other financial information of the target company.
- Operational Due Diligence: This covers the review and analysis of the target company's operations, production capacity, quality control, supply chain, technology and equipment, workforce, market analysis, innovation and R&D, and operational risk management.
- Market and Industry Due Diligence: This covers the review and analysis of the target company's market and industry, market size and growth rate, market demand and supply, competition, pricing and sales strategy, product differentiation, and growth and expansion plan.
- Legal Due Diligence: This covers the review and analysis of the target company's legal and regulatory compliance, contract and agreement, intellectual property rights, and legal liabilities.
- Regulatory Due Diligence: This covers the review and analysis of the target company's compliance with relevant laws and regulations, such as data privacy, environmental protection, and labor laws.
- Environmental Due Diligence: This covers the review and analysis of the target company's impact on the environment, such as waste management, pollution control, and sustainability.
- Human Resources Due Diligence: This covers the review and analysis of the target company's workforce, talent management, compensation and benefits, and employee relations.
- Information Technology Due Diligence: This covers the review and analysis of the target company's information technology systems, security, data privacy, and technology roadmap.
- Reputation Due Diligence: This covers the review and analysis of the target company's reputation, brand image, and public relations.
- Strategic Due Diligence: This covers the review and analysis of the target company's strategic direction, growth and expansion plan, and alignment with the acquiring company's strategy.
- Cultural Due Diligence: This covers the review and analysis of the target company's culture, values, and organizational behavior, and how it aligns with the acquiring company's culture.
1. Financial Due Diligence:
- What are the company's historical financial statements for the past 3 to 5 years?
- Have there been any significant changes in revenue, profitability, or cash flow over the past year?
- How does the target company generate revenue and what are the key drivers of its revenue growth?
- What is the target company's cost structure, including direct and indirect costs, and how does it compare to industry benchmarks?