Finance M&A Due Diligence Checklist

Cash Flow:

• Cash flow forecast for the next six months
• Trend line of work capital for the past year, changes relative to total sales 
• Working capital by segment, product line, and customer
• Historical and projected capital expenditure requirements

Profits: 

• Budget projections or business plans for the Business and the Target
• Capitalized a disproportionate amount of expenses 
• Any material changes in the financial position of the Business and the Target
• Past budgets and projections with actual experience in order to assess the accuracy of management estimates
• Copies of federal tax returns for the last three years
• Copies of letters to the Target's auditors with respect to current, pending or threatened lawsuits or Target's delayed expenses ...

Related Content