Business acquisition due diligence checklist

When doing due diligence on a potential business acquisition, the following items should be collected and analyzed to assess the target company’s capabilities, market, business development resources & process, contract backlog and sales pipeline.

  • Copies of all strategic sales/marketing documents or plans
  • Historical sales results including number and size of bids; win/loss rate (if available)
  • Current business backlog and comparison with historical information
  • Growth opportunities – new business projections including all pending bids or proposals
  • Market expansion opportunities (if any)
  • Technology initiatives and planned investments
  • Business/service/client mix including any dependence upon a single or few customers
  • Unique capabilities
  • Trademarks, patents, copyrights
  • Software products
  • Client list by size and duration
  • Copies of all contracts including contract vehicles and subcontracts
  • Identification of all contracts/revenue won through small business or set-aside programs
  • Unusual contract clauses
  • Labor rate/pricing strategy
  • Client relations, reputation and goodwill including past performance (copy of any client satisfaction surveys)
  • Channel relations with vendors
  • Teaming relations with other small businesses and integrators
  • Conflicts of interest that might impact future market growth
  • Geographic location of current markets
  • Marketing collateral (can it be used by your company?
  • Scheduled trade shows, conferences, speaking engagements or advertising commitments
  • Business development process documents
  • Lead tracking system description and latest lead list
  • Proposal capability including resumes and project summaries
  • Sales staff including outside consultants
  • Company non-compete policy (in effect?)
  • Sales incentive/bonus commitments/policies

Company Acquisition Due Dilligence Checklist (PDF)

Company Acquisition Due Dilligence Checklist (Word version)

– Mike Lisagor

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