Strong diligence reduces valuation risk, protects the acquirer, and helps avoid post‑closing disputes. Below is a practical checklist used in mid‑market transactions.
Corporate structure
Cap table, shareholder agreements, board consents, and material subsidiaries.
Contracts & revenue
Top customers, change‑of‑control clauses, renewal cycles, and revenue concentration.
Compliance & litigation
Regulatory licenses, pending disputes, and historical notices.
Financial & tax
Audits, contingent liabilities, and major tax exposures.
IP & data
Ownership chain, registrations, and data protection practices.