Where Can Due Diligence Be Applied?
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 Profit Center to Overall Performance
- 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@superdiligence.com
Due Diligence, Inc.
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