Professional Documents
Culture Documents
Rating summary
Financial performance 9
Brand value 4
Business condition 2
Prospects for the future 1
Customers 4
Competitive environment 4
Human capital 3
Quality of assets 3
Structure of purchase transaction 5
Other risks 4
Total 39
Gray cells will be calculated for you. You do not need to enter anything in them.
Note: The current due diligence ratings use a scale of 5 as highest and 1 as lowest. You can change the scale to another one, but make sure that it runs lowest to highest down the list data column.
Financial performance
Due diligence item Due diligence response Rating
The company reported GAAP net income of $20,100 with EBITDA of $28,000. Based on revenue levels, these figures
What is the current year profit (loss)? 3
are acceptable.
Business condition
Due diligence item Due diligence response Rating
What is the current cost of entry into the industry? Is this cost
2
rising or falling, and why?
Does the need for expensive fixed assets or other large capital
expenditures limit our ability to compete?
Competitive environment
Due diligence item Due diligence response Rating
Quality of assets
Due diligence item Due diligence response Rating
Real estate: Are the location and the facilities suitable for the
3
business?
Machinery and equipment: What are the costs for repairs?
What are the costs for deferred purchases? What are the
costs for new investments short term?
Other risks
Due diligence item Due diligence response Rating
Are there any recent casualty losses and to which extent are
they covered by insurance?
Are heavy government regulations prevalent in the industry, or
is there potential for such regulation?
Are there any current or pending material litigation, including
employees, customers, suppliers, government –related etc.?
Are operations unusually susceptible to weather, political
events, or other generally uncontrollable events?
Due Diligence Analysis Chart
Other risks
Quality of assets
Human capital
Competitive environment
Customers
Business condition
Brand value
Financial performance
0 1 2 3 4 5 6 7 8 9
Rating
6 7 8 9
[Company Name]
[Date]
Financial documentation
Formal business plan exists; includes financials, strategic direction, and resource
Current annual business plan Yes 06/16/04
requirements for year
Insurance policies
Liability
Workers' compensation
Health coverage
Other
Legal documentation
Articles of incorporation
Amendments to articles
Bylaws
Office leases
Intellectual property
Patents
Trademarks
Copyrights
Trade secrets
Strategic agreements
Selling agreements
The company
Competitors
Suppliers
The industry
Research
Industry publications
Research reports
Consultant documentation
Other