Due Diligence of Company

DUE DILIGENCE

Due Diligence is the investigation that a reasonable business or person is expected to take before entering into an agreement or contract with another party or an act with a certain standard of care. It can be an obligation, but the term will more commonly apply to voluntary investigations. A regular instance of due diligence in different industries is the process through which a prospective acquirer assesses a target company or its assets for an acquisition.

The purpose behind due diligence holds that performing this type of investigation contributes significantly to informed decision making by enhancing the amount and quality of information available to decision-makers and by ensuring that this data is systematically used to consider the decision at hand and all its costs, advantages, and risks.

Types of Due Diligence

  • Buying a company due diligence.
  • Merger and amalgamation (M&A) due diligence
  • Financial due diligence
  • Customer due diligence
  • Commercial due diligence
  • Vendor due diligence.
  • Third Party due diligence.
  • Legal due diligence

Due Diligence Process

Compatibility audit

Financial audit

Macro-environment audit

Legal/environmental audit

Marketing audit

Production audit

Management audit

Information systems audit

Reconciliation audit

Documents Generally verified during Due Diligence

Organizational


The Company's Articles of Incorporation and all amendments


The Company's Bylaws and all amendments


The Company's book of minutes, consisting of all minutes and resolutions of shareholders, directors, executive committees, and other regulating groups.


The Company's organizational chart


The Company's list of shareholders and the number of shares held by each


Copies of agreements relating to options, voting trusts, warrants, puts, calls, subscriptions, and convertible securities.

Financial Information


Audited financial statements for three years, together with Auditor's Reports.


TThe most recent unaudited statements, with comparable statements to the prior year.


Auditor's letters and replies for the past five years


The Company's credit report, if available.

Assets


A schedule of fixed assets, their values and the locations thereof


A schedule of the Company's business locations.


Copies of all real estate leases, deeds, mortgages, title policies, surveys, zoning approvals, variances, or use permits.

Intellectual Property Rights


A schedule of domestic and foreign patents and patent applications


A schedule of trademark and trade names


A schedule of copyrights

Licenses and Permits


Copies of any governmental licenses, permits or consents.


Any correspondence or documents relating to any proceedings of any regulatory agency.

Environmental Issues


Environmental audits, if any, for each property leased by the Company.


A listing of hazardous substances used in the Company's operations

Taxes


Federal, state, local, and foreign income tax returns for the last three years


State sales tax returns for the last three years

Material Contracts


A schedule of all subsidiary, partnership, or joint venture relationships and obligations, with copies of all related agreements.


Copies of all contracts between the Company and any officers, directors, 5-percent shareholders or affiliates


All loan agreements, bank financing arrangements, line of credit, or promissory notes to which the Company is a party.


All security agreements, mortgages, indentures, collateral pledges, and similar agreements


All guarantees to which the Company is a party

Product or Service Lines


A list of all existing products or services and products or services under development


Copies of all correspondence and reports related to any regulatory approvals or disapprovals of any Company's products or services


A summary of all complaints or warranty claims


A summary of the results of all tests, evaluations, studies, surveys, and other data regarding existing products or services and products or services under development

Customer Information


A schedule of the Company's twelve largest customers in terms of sales thereto, and a description of sales thereto over a period of two years


Any supply or service agreements

Litigation


A schedule of all pending litigation

Insurance Coverage


A schedule and copies of the Company's general liability, personal and real property, product liability, errors and omissions, key-man, directors and officers, worker's compensation, and other insurance


A schedule of the Company's insurance claims history for the past three years

Frequently asked
questions

Welcome to Regitimate, your trusted partner for a wide range of business and legal services. If you don't find the information you're looking for here, feel free to contact us directly for personalized assistance.
  • How can Regitimate help me with company registration?
    We assist in the entire company registration process, from choosing the right business structure to preparing and filing the necessary documents. Our experts will guide you through the process to ensure compliance with all relevant laws and regulations.
  • Are your services available to individuals and businesses of all sizes?
    Yes, we cater to both individuals and businesses, regardless of size. Our services are designed to meet the needs of startups, small and medium-sized enterprises (SMEs), and large corporations.
  • What compliance services does Regitimate provide?
    Regitimate helps your business stay compliant with various regulations and requirements, such as annual filings, licenses, permits, and more. We offer ongoing support to ensure your business operates within the legal framework.
  • Can Regitimate handle my tax filings?
    Yes, we offer tax filing services to individuals and businesses. Our tax experts will ensure accurate and timely filing to help you minimize your tax liability while remaining compliant with tax laws.
  • How does Regitimate assist with Intellectual Property (IP) services?
    Our IP services include trademark registration, patent filing, copyright protection, and IP strategy development. We help safeguard your intellectual property assets and provide legal guidance in case of infringement issues.
  • What types of legal documentation does Regitimate prepare?
    We can help you with a wide range of legal documentation, including MOU’s, Agreements & Wills. Our legal experts ensure that your documents are well-drafted and legally sound.
  • What property-related services does Regitimate offer?
    Our property-related services cover property transactions, lease, property registration & verification, Succession & Legal Heir Certificate.
  • How can I get started with Regitimate services?
    To get started, simply contact us through our enquiry form, email, or phone. Our team will assess your needs and guide you through the process of selecting and customizing the services that best suit your requirements.
  • Are your fees competitive, and do you offer customized service packages?
    We offer competitive pricing for our services, and we can create customized service packages tailored to your specific needs and budget. Contact us for a personalized quote.
  • Is Regitimate compliant with data protection and confidentiality standards?
    Yes, we take data protection and confidentiality seriously. We adhere to all relevant data protection laws and have strict confidentiality measures in place to safeguard your sensitive information.
  • How can I reach Regitimate's customer support for assistance?
    You can reach our customer support team by visiting our website's contact page, sending an email, or calling our dedicated customer support hotline.
  • Culpa Nam illum im
    Quis ut natus aspern

GEt A Free
Consultation

TRUSTED COMPANIES

The driving force behind our success, each with a unique story of growth and achievement.

Speak With Our
Experts Today!

Book a Consultation