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Information and Documents Required for Due Diligence Review before Signing Contract

by Byrne Anderson
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The due diligence process includes accurate analysis and research conducted by professionals. It helps in making the right decisions before signing a business partnership or acquisition. As an investor company, you will need to determine the target’s compliance and financial integrity. It also helps in identifying potential problems before investing in any business. Such information will give you room to make negotiations, and avoid costly errors.

If you are planning to get due diligence review, but are unsure of how it works, then call professionals consultants. Companycheck biz excels in offering due diligence review as well as necessary documents like company registration certificate. They are a medium between corporate document seekers and departments that supply these documents.

The decision to buy a business is thrilling, but it can accompany risks and pitfalls. To reap the investment benefits of partnering with an established name accompanied by a wide customer base, it is crucial to first attain the due diligence report. It will help you decide whether to sign a contract or not. The information and documents needed before you commit to an agreement are given below.


Get familiar with the target company’s overall structure. Does it comply with state and federal laws? Are the files organized and in order? Review all the corporate documents like minute books, articles of incorporation, organization charts, and bylaws. If the organization cannot offer documents or the records are unorganized, then don’t take the deal forward…..walk away!


When you are investing, you expect the source to be profitable, allowing your investment to double up. At times a deal may look prosperous on the surface level, but this can be deceptive. Record review can reveal the truth. Check the audited financial statements of the past, credit reports, company’s budget, and financial analyst reports. Evaluate the account receivables, liabilities, debt schedules, and inventory.


Existing company assets will give an idea of the potential liability and financial health. Inventory, equipment, property, and bank accounts need to be reviewed. You need to request for the location of the land and related documents of acquiring that property. Even evaluate the copies of leases, permits, deeds, zoning, mortgages, and U.C.C. filings.


Each employee’s detailed information will help you get familiar with your potential responsibilities, if you purchase the company. Understand the company policy for recruiting, promoting, benefits, and compensating. You even get to know the potential legal disputes involved while handling employee conflicts.

Intellectual property

As a potential investor, you need to be familiar with areas that may require protection. Check the company’s, hire agreement. It has to include terms and conditions for intellectual property that the employee created belongs to the company. Study the trademark, copyrights, and existing/pending patents. Get familiar with how the company safeguards its trade secret. Find out if there is any current intellectual property claims involved.

Tax record

You wouldn’t want to inherit tax liabilities and issues. Thus, check the local, state, and federal tax returns. If the company is transacting internationally, then review their foreign tax documents.


The target company may have an agreement with employees, banks, contractors, shareholders, and distributors. The due diligence report must include loans, collateral pledges, bank agreements, installment sales, stock purchases, warranties, non-competition agreements, mergers, and acquisitions.


Does the target company have proper insurance coverage? You may need some type of insurance legally, so find out if the target complies by it.

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