due-diligence-checklist

Vocabulary Word

Definition

A 'due diligence checklist' is what you use when buying a business to make sure there are no hidden issues. Kind of like a checklist you'd use to buy a used car, but for a business.

Examples in Different Contexts

In business acquisitions, a 'due diligence checklist' is used to assess the financial, legal, and operational status of a company being acquired. A business analyst might say, 'Our due diligence checklist covers everything from financial records to compliance with regulations, ensuring we make an informed decision.'

Practice Scenarios

Tech

Scenario:

We're thinking of acquiring this software startup. We'd want a complete understanding of their technology and how they use it.

Response:

We should apply our due diligence checklist to review their technology stack, intellectual rights, and tech team skills.

Operations

Scenario:

We are considering a new supplier for our manufacturing process. I suggest we thoroughly check their credentials and performance before finalising anything.

Response:

You're right. Making use of a due diligence checklist will aid us in vetting the supplier effectively.