Due Diligence Checklist Company Registration Number Date Established Legal Status of Business Principal Bankers Auditors Attorneys Insurers OWNERSHIP Names and Holdings of Shareholders, Partners, Members or Proprietor: Name % Age Phone Address LOCATION (Head office) Address: Stand No: Description of location: PREMISES Description Area of Land Factory Covered Area Office Area No of Offices Owned or Leased Rental Basis Lease Rental Lease Period Lease Escalation
BUSINESS Definition of Business (Include photographs & attach Company Brochure if available) History of Business: PRODUCTS Major Product Lines Product Line Volume Turnover R % Turnover Past Annual Growth % Future Annual Growth % Description of Products: (Attach Product Brochures if available) 8. MARKETS Major Markets: Market Segment Market Size Growth Potential Share of Market Total
MAJOR CUSTOMERS Customer Annual Purchases % Turnover Credit Terms Location TOTAL PROMOTION & PRICES Marketing Strategy Promotion Policy Pricing Policy Sales policy: Discount Policy Terms of Payment: MAJOR COMPETITORS Name Location Turnover Market Share Total Competitive Advantage Key Differences
MAJOR SUPPLIERS Supplier Average Annual % Total Payment Terms Total Purchases Purchasing Policy Payment Terms STRATEGIC POSITIONING Business strategy Business Objectives Present Growth: (Volume & Financial) Future Growth: (Volume & Financial) Capacity to Expand: Capital Requirements: Barriers to Entry: Key Opportunities: Real Threats:
Strengths & Weaknesses Description Strength Weakness Industry Growth Competition Barriers to entry Export Potential Size of Market Market Share Protection Margins Cyclical Industry Cash Flow Cash Requirements Management Financial Controls Administrative Efficiency Financial Reporting Gearing Liquidity Access to Capital Physical capacity to expand Financial Capacity Management Structure Sales Team Low Cost producer Basis of Competition Brands Price Competitiveness Product Quality Niche Market
Strengths & Weaknesses continued Description Strength Weakness Technical Skills Production Runs Job Shop Plant Age Plant Efficiency Factory Layout Premises Location Working Environment Availability of Labour Cost of labour Skills of Labour Unions Labour Relations Labour Intensive Limit Availability of supplies Quality of Supplies Efficiency of Supplies Stock Requirements Stock Control Delivery Costs Delivery Efficiency
MANAGEMENT & STAFF Organisation chart: (Attach detailed Organisational Chart) (Sketch Key Management Structure) Skills and Qualifications: Special skills: (Attach summary CV of key Managers) (Difficult to replace) Service contracts: Pension Scheme: Medical Aid: Insurance: Managers & Staff Name Position Salary Profit Share Service Contracts Will Continue Service Staff Summary Directors Management Administration Sales Technical Production Skilled Unskilled Semi Skilled Drivers Security Total Number Total Salaries Bonus Other Benefits Employment Terms
FIXED ASSETS Major Fixed Assets (Attach Up to Date Fixed Asset Schedule) (List Assets Bookvalue & Market Values) Computer Equipment Specialised Equipment: 16.1. Capital Expenditure: Description Last Year Current Year Year 1 Year 2 Year 3 Property Plant Machinery Office Furniture Computer Vehicles Other Leased Assets LEASED ASSETS (Item, outstanding, institution) FINANCIAL Audited Financial Statements: Management Accounts Last Year End: (Attach Past 3 years) (Attach details) Management Accounts Year to date: (Attach Detailed Income Statement & Balance Sheet)) Budget Current year: Budget next 3 Years: (Attach details) Debtors: Creditors: (Attach Current Age Analysis) (Attach if available) (Attach Current Age Analysis) Salaries & Wages: Insurance Company: (Current Print Out) (Details of Policy)
17.1.Liabilities: (Current Situation) Type Lender Amount Interest Rate Short Term: OD Facility O/D Utilised Loans Other Long Term: Mortgage Loans Loans Period Security Leases: Shareholders: Loans: Attach Schedule if necessary) Adjustments for avoidable costs: Item Description Last Year This Year Next Year Ongoing Sales Manufacturing Stock Motor Vehicle Entertainment Insurance Travel Other SALE ASPECTS Reason For Sale:
Sale of shares or assets: Consider sale of majority share: Price: Justification: Acceptable Terms: Deposit: (If not a cash sale) Period: Interest rate: Shares in acquiring company: Other: GUARANTEES AND WARRANTIES (By Seller) Book debts: Profits: Assistance to new owner: Continuing Employment: Period: Remuneration: Effective date of take-over: ADVERTISING OF BUSINESS Press Advertising: Advertising Budget Allowed: Restriction on disclosure: BUYERS Buyer Suitability: Potential Buyers: Potential Buyer Industries:
Companies Precluded from Buying: OTHER: NOTES