I am often asked where due diligence can be applied. What follows is a partial list of the many areas where due diligence can help a company:
| Accounting Procedures | Accounting Systems |
| Acquisitions, Mergers or Sales of Businesses | Analysis of Present & Future Products & Services |
| Assumptions for Projections | Attendance at Seminars, Conferences & Shows |
| Avoidance of Conflicts of Interest | Board of Directors Issues |
| Brand and Reputation | Budgeting |
| Business Plans | Buy-Sell Agreements |
| Capital Expenditures | Cash Flow |
| Communication & Teamwork | Compensation & Benefit Plans |
| Computer Systems & Capabilities | Contracts |
| Contributions of each | Corporate Acquisition Candidates |
| Corporate Budget | Corporate Culture |
| Corporate Planning | Cost Structures |
| Credit-Reporting | Customers |
| Decision Processes | Developing the Optimum Timing of Exit Planning events for generating the Optimum Value of the Transfer |
| Disaster Recovery | Document Flow |
| Employee Benefit Systems | Employee Hiring and Retention |
| Employee Satisfaction | Employee Stock Ownership |
| Equity Capital | Equity Compensation |
| Exit Planning for the Future Transfer of Business Interests to Family, Employees, Partners, or Outside Purchasers | External Market Environment Assessment |
| Financial Analysis | Financial Statements |
| Future Earnings Stream | Future Expansion Projects |
| Gifts of Stock or Securities | Industry Publications |
| Insurance | Intellectual Property Policies & Assets |
| Intellectual Property Security | Internal & External Business Documents |
| Internal Accounting Controls | Internal Audit Function |
| Internal Communications Strategy & Media | Issuance of Securities |
| Key Relationships | Key Senior Positions |
| Litigation & Administrative Actions | Loans & Financings |
| Management Communications | Management Succession Systems |
| Management Systems | Managerial Skills & Talents of Key Individuals |
| Market Research | Marketing & Sales Methods |
| Marketing Budget | Marketing Procedures |
| Methods of Evaluating Existing Products & Services | New Products & Services Evaluation |
| Objectives Set for the Business | Organization Chart, Existing Team & Planned |
| Organization Development | Organizational Structure |
| Outside Contractors | Outside Professional Firms |
| Partnership Dissolutions & Divorce Proceedings Affecting Business | Performance Reviews |
| Personnel Policies | Personnel Training and Development |
| Plans for New Locations | Press Interaction |
| Pricing & Pricing Strategy | Profit Generators & Indicators |
| Promotional Materials | Public & Private Offerings |
| Relationships with Vendors, Suppliers, & Alliances | Reporting Procedures |
| Research & Development | Resource Handling & Availability |
| Safety | Sales & Marketing Relationships |
| Sales Methods | Security |
| Shareholder Issues | Strategic Business Planning |
| Strengths & Weaknesses of the Organization | Team Growth |
| Technology | |
Applying due diligence to all parts of an organization will help improve financial performance, strengthen competitive positions, expand organizations more effectively, preserve human performance and increase internal know-how. With these improvements, companies are better able to grow through mergers and acquisitions, spin-offs, and alliances. Comprehensive due diligence brings new power to the organization, adding to the existing strengths of management and staff, creating more value for a unit or division, as well as improving its abilities and success rate when acquiring or merging with new firms.
Charles F. Bacon, CEO & Keeper of the Vision
charlesbacon(at) superdiligence (dot) com
Due Diligence, Inc.
www. superdiligence (dot)com
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