Financial Due Diligence Checklist

Checklist Item Documents to Check

- Income statements - Balance sheets - Cash flow
Financial Statements statements
- Sales contracts - Invoices - Revenue recognition
Revenue Analysis policies
Cost and Expense Analysis - Expense reports - Budgets - Cost accounting records
- Accounts receivable aging report - Inventory records -
Working Capital Accounts payable aging report
- Asset registers - Loan agreements - Leases - Debt
Assets and Liabilities schedules
- Loan documents - Credit agreements - Debt service
Debt and Financing schedules
Cash Flow Analysis - Cash flow statements - Budgets - Cash flow forecasts
Financial Ratios and Metrics - Financial reports - Industry benchmarks
- Tax returns - Tax assessments - Correspondence with
Taxation tax authorities
Legal and Regulatory - Legal contracts (e.g., leases, customer agreements) -
Compliance Regulatory filings - Compliance reports
- Organizational charts - Resumes of key personnel -
Management and Governance Board meeting minutes
- Integration plans - Cost-savings projections - Revenue
Synergy Analysis enhancement projections
- Integration project plan - IT systems documentation -
Integration Planning Communication plans
- Risk registers - Contingent liability analysis - Insurance
Contingency Planning policies
Financial Projections - Financial models - Assumptions documentation
- Valuation reports - Comparable company analysis -
Valuation Discounted cash flow analysis
- Due diligence reports - Meeting minutes - Email
Documentation and Reporting correspondence
- Engagement letters with advisors - Invoices for services
Professional Advisors rendered
Post-Acquisition Planning - Integration progress reports - Performance metrics
Risk Management - Risk management plan - Issue logs

This format provides a comprehensive list of the documents to check alongside each
checklist item, ensuring that all necessary documentation is reviewed during the
financial due diligence process.