Understanding the process of due diligence is important to both the buyers and sellers. For sellers who are looking for buyers or investors, it would be able helpful to understand the process and what documents to prepare. For buyers, it would also be helpful to have an understanding of what documents and information the lawyers and auditors will be looking for to evaluate and conduct their due diligence.
g. Copies of minutes of the meetings, board resolutions, secretary’s certificates issued by the companyj. Stockholders agreements2. Financial informationb. Bank information disclosing bank accounts maintained by the companyd. Schedule of cash flow, expenses, debt & profitabilityg. Schedule of accounts payables3. Other financial documents and informationb. Disclosure of any existing or potential market barriersd.
f. Information on the company’s risk management practices, insurance coverage, and other potential liabilitiesa. Property, plant and equipment that are used in the businessc. List of any intellectual property owned by the company such as trademarks, patents, copyrights and licensese. Any claims and potential contingent liabilities involving the assets5. Operations and management