Assuming the role of a potential investor or buyer in an acquisition, merger or investment deal involves lengthy reviews and examining a lot of documents. This can be time-consuming particularly when parties are reviewing large quantities of information in a range of due diligence areas such as intellectual property, financial, and tax. To avoid confusion and decrease the risk of missed items, it is crucial to compile a complete list of all materials that must be requested during the review process.
A thorough due diligence checklist can assist an individual to pinpoint crucial information and ensure that all aspects of the review are considered. The human capital component of review, for instance it will focus on the employees and staff of the company as well as their salaries and benefits. This might include a breakdown by location of employees as well as a comparison of salaries of employees in similar roles in their industry or area. It also will look into the linked here company’s policies and procedures around hiring and firing employees, employee remuneration and incentive programs, vacation and sick leave, and any contracts and segregation packages.
Many of these areas of due diligence will require the assistance of specialists and external consultants. To avoid delays, miscommunications and duplication of work, it is a good thing to set an appointment date for the review. A CRM system such as DealRoom can help to make this process more efficient, by providing a central location to manage all documents, communications and tasks.