Corporate Documents

Articles of Incorporation

Bylaws and Operating Agreement

Shareholder Agreements (if applicable)

List of all equity owners

Minutes of Board Meetings, Review of key decisions, strategic directions, and discussions from board meetings over the last few years.

Operational Documents

List of all employees, including roles, salaries, and contracts (if applicable)

Employee Turnover Rates, Insights into the company's culture and stability.

Details of Outsourced Functions, Information on what functions are outsourced, to whom, and under what terms.

Company Organizational Chart

Details of any employee benefits or incentive programs

Compliance with Employment Laws, Verification that the company is in compliance with labor laws, including worker classification, wages, and benefits.

Product development roadmap

Customer and Revenue Data

Customer Satisfaction Scores, Surveys, Net Promoter Scores (NPS), or other customer feedback metrics.

List of Customers and Contracts

Customer Acquisition Strategies, Deep dive into customer acquisition strategies and their effectiveness, including channel analysis and ROI.

Retention Costs, The cost associated with keeping customers, including service and support.

Customer acquision cost and lifeime value

Revenue breakdown by customer and product/service

Churn rate and other key performance indicators (KPIs)

Segmentation of Revenue, Breakdown of revenue by market segment, geography, or product line to understand diversification and market risk.

Risk Management

Risk Management Policies, Review of the company's risk management policies and procedures, including insurance coverage and crisis management plans.

Cybersecurity Risk Assessment, Comprehensive assessment of cybersecurity risks, including penetration testing results and incident response plans.

Technology and Infrastructure

Details of hosting and infrastructure providers

Technology stack details and any associated licenses

Backup Disaster recovery plans

Third-party Dependencies, Details on third-party services or libraries the product depends on, including risks associated with these dependencies.

Technology Scalability Assessment, Evaluation of the technology's ability to scale with growth projections.

Compliance Certifications, Information on industry-specific compliance certifications (e.g., ISO, SOC 2).

Security protocols and any past security breaches

Financial Documents

EBITDA Adjustments, Detailed analysis of EBITDA adjustments to understand the underlying profitability and cash flow.

Revenue Recognition Practices, Examination of revenue recognition practices to ensure they are in line with industry standards and accounting principles.

Contingent Liabilities, Detailed review of any contingent liabilities, such as warranties, guarantees, or litigation reserves.

Audit Reports, Review of any audit reports for financial accuracy and integrity.

Financial Projections, Future financial projections and the assumptions behind them.

Profit and Loss statements (typically for the last 2-3 years)

Balance Sheets

Goodwill and Intangible Assets: Detailed analysis of goodwill and intangible assets on the balance sheet to assess potential impairment risks or overvaluations.

Inventory Valuation: For companies with physical products, an evaluation of inventory valuation methods (e.g., FIFO, LIFO) and potential obsolescence.

Lease Obligations: Examination of lease obligations under ASC 842 or IFRS 16, including the impact on financial ratios and debt covenants

Cash Flow Statements

Operating Cash Flow Analysis, Deep dive into operating cash flows to understand the core business's cash-generating ability.

Free Cash Flow, Calculation of free cash flow (FCF) to assess the company's financial flexibility and ability to fund growth, pay dividends, or reduce debt.

Non-Recurring Items, Identification and analysis of non-recurring items that have impacted cash flows, to normalize for sustainable cash flow generation.

Tax Returns and related documents

List of all assets and liabilities

Capital Expenditure Plans, Details on planned investments in technology, facilities, or equipment.

Details of any outstanding debt

Intellectual Property

List of all patents, trademarks, copyrights, and other intellectual property

Third-party Code Audit, Analysis to ensure that third-party code is properly licensed and doesn't infringe on IP rights.

IP Strategy, Understanding of how intellectual property contributes to the company's competitive advantage.

Licensing agreements

Source code and documentation of software

Details of any open-sourced software used

Legal and Compliance Documents

List of all pending or potential legal claims or litigations

Data Privacy and Security Compliance, Details of GDPR, CCPA compliance, or other relevant data protection regulations

Details of any regulatory or compliance issues

Copies of all contracts, including vendor and partnership agreements

Environmental, Social, and Governance (ESG) Compliance: Information on the company's adherence to ESG standards and practices.

Details of any past legal disputes and their outcomes

Human Resources

Talent Assessment, Evaluation of key talent and management team, including succession planning and key person dependencies.

Cultural Assessment, Deep dive into the company culture, including employee engagement, diversity and inclusion initiatives, and workplace environment.

Marketing and Sales

Marketing strategy and plans

List of all marketing assests including websites, blogs, and social media accounts

Sales pipeline and forecasts

Customer testimonials and case studies

Brand Value Assessment, Evaluation of the brand's strength, reputation, and market position.

Competitive Analysis, Detailed analysis of the competitive landscape, including strengths, weaknesses, opportunities, and threats (SWOT).

Additional Sections to Consider

Cultural Fit, Evaluation of how well the company's culture aligns with your own, crucial for post-acquisition integration

Strategic Fit, Analysis of how the acquisition complements or enhances your current business strategy and offerings.

Post-Acquisition Integration Plan, Outline of the plan for integrating the company, including systems, processes, and culture

Integration Planning

Technology Integration Plan, Detailed plan for integrating technology platforms, systems, and data to ensure seamless operations post-acquisition.

Cultural Integration Strategies, Strategies for integrating cultures to minimize disruption and maximize employee retention and engagement.