Business Owner Resources

During the due diligence process, an investor will request information about your company that will inform their investment decision moving forward. In addition to asking questions of you and key members of your management team during meetings or phone calls, they will provide you with a request list. We’ve compiled this sample list so you can gain a better understanding of the types of documents you might be asked to produce.

Company and Legal Information

• Formation documents and operating agreements


• Detailed ownership information and member register


• Details of any other investment or ownership interest in any other entity held by the company


• Licenses, permits or other governmental authorizations necessary to conduct the company’s business (in the U.S. and abroad, if applicable)


• Copies of correspondence with government authorities


• Detailed list of property owned, leased or used by the company, to include contracts, LOIs and lease agreements on real estate


• List and description of intellectual property, to include trademarks, service marks, trade names, patents (including expired patents), copyrights, domain names and any other intellectual property


• Detailed information about all litigation, claims, investigations, proceedings, arbitrations, grievances or other legal procedures in the past, present or pending


• Copies of any contracts or material agreements, to include those with vendors and suppliers

Financial Information

• Reviewed financial statements


• Description of accounting methods and treatments


• Disclosure of any accounting issues


• Historical cash flows


• Monthly income statements and balance sheets


• Detailed information on indebtedness and financial arrangements, to include all related documentation


• Monthly bank statements for all accounts, both active and closed


• Accounts payable process and procedures


• Information on procedures pertaining to banking, cash and corporate credit cards


• Tax documentation


• Sales software data with breakdown by product type, sales mix, etc.


• If applicable, any documents relating to material write-downs or write-offs


• Details of G&A expenses for the last 3 years


• Merchant account statements & reports


• Discussion of Accounts Payable process and procedures.


• Banking / Cash / Corporate credit cards – cash handling procedures; bank account access/authorization; internal controls.


• User access/login for accounting system(s)

Human Resources

• Employment agreements and detailed compensation reports


• Detailed org chart including information on departures of key employees within the last 3 years


• Employee benefit plans and related documents


• Biographies for key employees

Operations

• Government inspection reports (as applicable to your business)


• If applicable, customer satisfaction surveys


• Current sales materials describing the Company’s products/services


• If applicable, strategic sales and marketing plans, digital marketing strategies and marketing planning info


• Updates on current business development initiatives


• Rationale behind historical pricing and analysis undertaken to determine appropriate increases


• Information on anticipated future price increases or adjustments


• Detailed information on sourcing and supply chain strategy and operations


• Information on any potential supply or inventory problems

Technology

• Description of IT systems, current vendors/providers, and any recent/anticipated changes in providers or platforms


• If applicable, procedures in place to ensure compliance with data protection legislation

Insurance and Liability

• List of all material insurance arrangements setting forth insurer, nature of risks covered, insured amounts and deductibles


• Summary of claims experience under insurance policies, including pending claims


• All correspondence relating to cancellation or non-renewal of any material insurance policy


• All other relevant documents pertaining to the Company’s insurance and liability exposure


• Description of Workers Compensation policy, historical experience ratings and high level claims information