I need the Financial Due diligence checklist of requirements

Company Overview

Company history and background

Organizational structure

Key management personnel

Business model and revenue streams

Here are some additional steps you could include in the Company Overview section of your Financial Due Diligence checklist

Overview of products and services offered

Market position and competitive landscape

Customer demographics and segmentation

Key suppliers and partnerships

Current business strategy and future growth plans

Ownership structure and shareholder information

Recent changes in management or ownership

Description of key operational processes and systems

Overview of geographic presence and expansion plans

Analysis of any recent acquisitions or divestitures

Summary of any ongoing or pending litigation or disputes

Assessment of intellectual property and proprietary technologies

Review of any significant contracts or agreements in place

Overview of employee structure, including headcount and turnover rates

Compliance with industry regulations and standards

These additional steps can help provide a more comprehensive view of the company and its operations, which is critical for effective financial due diligence

Financial Statements

Last three years of audited financial statements

Latest interim financial statements

Notes to the financial statements

Management discussion and analysis

Certainly! Below are additional steps that can be included in the Financial Statements section of your Financial Due Diligence checklist

### Financial Statements

Last three years of audited financial statements

Latest interim financial statements

Notes to the financial statements

Management discussion and analysis

- Review of significant accounting policies and changes

- Analysis of revenue recognition methods and practices

- Examination of any restatements or revisions to prior financial statements

- Assessment of related party transactions and their disclosures

- Evaluation of off-balance sheet arrangements or commitments

- Verification of compliance with relevant accounting standards (e.g., GAAP, IFRS)

- Comparison of financial performance against industry benchmarks

- Analysis of key financial ratios (liquidity, profitability, solvency)

- Review of cash flow statements for operating, investing, and financing activities

- Inspection of inventory valuation methods and any impairment assessments

- Summary of any significant estimates or judgments made in preparing the financial statements

- Evaluation of the impact of foreign exchange or interest rate fluctuations on financial performance

- Confirmation of the existence and valuation of fixed assets and intangible assets

- Analysis of tax provisions and deferred taxes

- Review of contingent liabilities as disclosed in the financial statements

This expanded list should help provide a comprehensive overview of the Financial Statements aspect of the due diligence process

Tax Compliance

Copies of tax returns for the last three years

Status of any tax audits or disputes

Review of tax liabilities and deferred tax assets

Sales tax and VAT compliance

Revenue Analysis

Breakdown of revenue by product/service line

Customer concentration risk assessment

Historical revenue growth rates

Any revenue recognition policies

Expenses and Liabilities

Breakdown of operational expenses

Review of fixed and variable costs

Accounts payable aging report

Any outstanding loans or credit lines

Cash Flow Analysis

Historical cash flow statements

Cash flow projections and assumptions

Working capital analysis

Liquidity ratios

Assets and Inventory

Schedule of fixed assets and depreciation

Inventory valuation methods used

Assessment of obsolete or slow-moving inventory

Intellectual property and intangible assets

Contingent Liabilities

Review of any pending or potential litigation

Environmental liabilities

Guarantees and indemnities

Off-balance-sheet liabilities

Compliance and Governance

Regulatory compliance history

Internal controls and risk management processes

Board of directors' oversight and governance policies

Any past or current investigations

Market and Industry Analysis

Overview of industry trends and market conditions

Competitive landscape analysis

SWOT analysis (Strengths, Weaknesses, Opportunities, Threats)

Potential risks and opportunities

Conclusion and Recommendations

Summary of findings

Areas of concern

Recommendations for future actions

Overall assessment of financial health

This checklist can be customized based on specific business needs or industry requirements.