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Acquisition diligence scope

What is examined in a business whose ownership, liabilities and people will pass to the buyer, and what the examination found.

The deliverable

What it is

Partner selection keeps a due diligence record on a counterparty that stays independent and is bound only by contract. Acquisition diligence differs in kind: the buyer takes on the whole company, including its history, liabilities and people, so the scope covers finance, tax, legal, commercial, technology and people together.

Its findings feed directly into price and contract terms. A finding that changes neither has been noted rather than acted on.

One level in

What it is made of

Each element is a constituent part of the component. Follow one to see the attributes it carries.

  1. Scope areas

    The areas of the target examined, who leads each, and how far each examination has progressed.

    3 attributes: Area · Lead · Status

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  2. Material findings

    What diligence found that affects value or risk, and the effect each finding has on price or terms.

    3 attributes: Finding · Price effect · Priority

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  3. Transferring liabilities

    Obligations that pass to the buyer with ownership — disputes, tax, pensions, contracts — and how each is covered.

    3 attributes: Liability · Cover · Estimated exposure

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Give every material finding a consequence in price or terms. A finding with none has been read, not acted on.