M&A Due Diligence Checklist: Complete Guide
A comprehensive checklist for conducting thorough due diligence on acquisition targets.
M&A Due Diligence Checklist: Complete Guide
Due diligence is where deals are made or broken. This comprehensive checklist ensures you cover the critical areas.
Financial Due Diligence
Historical Performance
- 3-5 years of audited financial statements
- Monthly management accounts for recent periods
- Revenue breakdown by customer, product, geography
- Gross margin trends and drivers
Working Capital
- Normalised working capital analysis
- Seasonality patterns
- Collection and payment terms
Debt and Liabilities
- Existing debt facilities and terms
- Off-balance sheet obligations
- Contingent liabilities
Commercial Due Diligence
Market Position
- Market size and growth trends
- Competitive landscape
- Customer concentration risk
Revenue Quality
- Recurring vs one-time revenue
- Contract terms and renewal rates
- Pipeline and sales effectiveness
Operational Due Diligence
Technology
- IT infrastructure assessment
- Technical debt evaluation
- Cybersecurity posture
People
- Key person dependencies
- Employment contracts and terms
- Cultural assessment
Legal Due Diligence
Corporate Structure
- Entity structure and ownership
- Outstanding litigation
- Regulatory compliance status
Contracts
- Material contract review
- Change of control provisions
- IP ownership verification
Integration Planning
Due diligence isn't just about risk — it's about planning integration:
- Synergy identification and validation
- Integration complexity assessment
- Day 1 readiness requirements
Streamline your due diligence process Explore Simplif-i M&A →
✨ Recommended For You
Due Diligence as an Operational Headstart, Not Just a Checklist | Simplif-i
Due diligence should build your integration plan, not just a risk register. Learn how UK mid-market dealmakers turn DD findings into Day 1 operational readiness.
Cross-Border Due Diligence for UK Firms Acquiring in the US: The Operational Playbook
UK firms acquiring US targets face CFIUS reviews, HSR filings, multi-state compliance, and operational blind spots. Here is the due diligence playbook that prevents post-close surprises. M&A Pro+ from $190/month.
Post-Deal Value Capture: Why 70% of M&A Deals Underperform and How to Fix It | Simplif-i
70% of M&A deals fail to deliver expected value. The problem is not due diligence. It is post-deal execution. Learn the operational playbook for value capture in UK mid-market M&A.