Due Diligence Report Template

Company Name: [Company’s Name]

Chief Executive Officer: [Chief Executive Officer’s Name]

Author(s): [Names of Those Who Compiled Report]

Report Date: [Date]

The DealRoom team compiled a Due Diligence Report Template to guide investors and
consulting agencies in creating a sharp, concise 3-5 page due diligence report.

The items listed in Section 3: Due Diligence Assessment Scorecard, are suggested topics that
we found to be pertinent to most due diligence reviews. However, these may not be relevant to
all cases depending on the type of and reason for due diligence. We made this Google
Document downloadable so that you may edit and customize accordingly.

Below is our recommended Scoring Matrix for Section 3.

Scoring Matrix

(6) = Very Positive Outlook (5) = Positive Outlook (4) = Neutral Outlook
(3) = Somewhat Negative Outlook (2) = Negative Outlook
(1) = Very Negative Outlook, Cannot be Overcome

For an efficient, simplified, and inexpensive due diligence review, we recommend that you use
this report in conjunction with our M&A Due Diligence Software. More information and pricing
can be found here.

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Section 1: Scope and Process

Due Diligence Process This report is based on significant and relevant findings
uncovered during the due diligence review of [types of information
scrutinized, ex. financial, tax, human resources, operations] by
[names of those who conducted due diligence] of [company
name], provided by management.

Proposed Transaction [Buyout company name] is evaluating whether to [buy out/merge

with/acquire] [company name] and has appointed [names of
those who conducted due diligence] to conduct due diligence on
[company name].

Significant Matters and The due diligence review period was [date or quarter range]. The
Scope scope of work consisted of:
- [List of aspects and functions of the company that were
assessed, ex. BIS, financial statements, company policies]

Examined Documents This report is based on the following documents and surveys:
for Due Diligence - [List of all documents examined during due diligence]
- [List of any administered surveys, if applicable]

Limitations The following information was inaccessible to us:

- [List of any relevant documents that were not made
available during due diligence]
- [Disclosure if work not constituted with respective auditing
standards, ex. Generally Accepted Auditing Standards
(GAAS)]
- [Disclosure that report was created and compiled upon the
integrity of management, if applicable]

Section 2: Company Overview

Company Description [Brief, 1-2 sentence description of company]

Company History [Brief, 1-2 paragraph summary of the company’s history and any
major events]

Leadership The following is a list of the company’s leadership:

- [List of upper management and key players in the
company, ex. CEO, COO, CFO, VPs]

Headquarters [Address of corporate headquarters]

Section 3: Due Diligence Assessment Scorecard

Topic Score Comments

Industry Overview [Please refer to Discuss information gathered and reviewed regarding
and Outlook the sample the company’s industry and market trends.
scoring matrix
above] Topics may include:
- Industry size and growth projections
- Industry characteristics
- Key market players and respective market
share
- Key market trends
- Products/services in the pipeline

Financial Overview Overview the company’s financial statements and

and Assessment any key issues, observations, or associated risks.

Topics may include:

- A high percentage of revenue allocated to
only a few products or clients
- Declining sales
- Any found discrepancies with what was
presented in the confidential information
memorandum (CIM)
- Materials that constitute for a high percentage
of the cost of goods sold (COGS)
- Debts, loans, and overdue payments

Asset Appraisal Appraise the worth of the company’s tangible and

intangible assets.

Topics may include:

- The company’s properties and facilities
- The company’s machinery and technologies
- Intellectual property
- Patents and copyrights

Company Describe your assessment of the company’s

Leadership leadership team.
Assessment
Topics may include:
- Individuals who hold pivotal positions in the
company and their work experiences
- Leaderships’ skills, expertise, and
proficiencies
- Areas of needed improvement
 Workforce Describe the statistics and details regarding the
Evaluation company’s workforce.

Topics may include:

- Turnover statistics
- Benefits and compensation information
- General employee demographic data
- Union information, if applicable
- Workforce skills and deficiencies

Customer/Client Delineate the data and statistics regarding the

Base company’s customer base.

Topics may include:

- Market niche
- Key trends
- Associated risks

Partnerships If applicable, detail information regarding the

company’s partnership(s).

Topics may include:

- Purpose for partnership
- Type of partnership
- Partnership assessment and risks

Legal Information Summarize any statutory items.

Topics may include:

- Historical and outstanding lawsuits
- Contracts
- Licensing
- Permits

Risks List any risks found during the due diligence review.

Overall Investment Describe overall investment attractiveness and

Attractiveness recommendations on proceeding forward.

Section 4: Appendix

Illustrate any graphical depictions or charts of information presented in Section 3.

Examples may include:

- Tables depicting high margin products
- Revenue/loss year-to-year comparisons
- Market share pie charts