DUE DILIGENCE LIST

Below is a partial list of items your attorney and accountant will need in order to complete the transaction. As a seller, it is in your best interest to start collecting these items as soon as possible  to make the transaction smoother. Having these items ready for a buyer will show that you have a well-organized business that the buyer can have faith in. As a buyer, this list will help you organize what you will need to request from the seller.

#

Date Requested

Date Received

Due Diligence Items

1

 

 

Articles of Incorporation (By Laws, Minutes, Share Certificate, Stock Ledger)

2

 

 

Copy of any Shareholders Agreements

3

 

 

Copy of all effective loan agreements or current credit agreements

4

 

 

Copy of list for all bank accounts and reflecting current statements

5

 

 

Copy of federal and state tax returns for the last three years

6

 

 

Copy of list for all registered trademarks or trade names and copy of such filings

7

 

 

Copy of software licenses that are property of corporation

8

 

 

Copy of all commercial contracts

9

 

 

List and description of any claims or law suits

10

 

 

Intangible Tax 2004

11

 

 

Tangible Tax 2004

12

 

 

Fixed Assets Schedule

13

 

 

Depreciation Schedule

14

 

 

Amortization Schedule

15

 

 

Loans (identify and describe each person or company)

16

 

 

Monthly Sales Tax Records for 2002, 2004, and for monthly year to date

17

 

 

Copy of all Licenses

18

 

 

Sales tax

19

 

 

Copies of insurance policies

20

 

 

Balance Sheet & Income Statement Income (Profit & Loss) for the last three years

21

 

 

Bank Statements 2003, 2004, and monthly year to date

22

 

 

Payrolls 2003, 2004 (Form UCT-6)

23

 

 

Aging of accounts receivable 2003, 20034 (A/P aging summary)

24

 

 

Health Insurance (copies)

25

 

 

List of employees, employment records/contracts, job evaluation, description, salary, organizational chart

26

 

 

List of assets not included in purchase price

27

 

 

Copy of Property tax bill or schedule (if applicable) or building/property lease

28

 

 

Schedule of expenses paid for the benefit of shareholder/owner

29

 

 

Certificate of Good Standing

30

 

 

Copies of contracts with customers and suppliers

31

 

 

Copies of lease agreements

32

 

 

Pension Plan information

33

 

 

Brief history of the Company and its operations including a description of products (or services) offered and markets served

34

 

 

List of top customers and sales volume

35

 

 

Contact name, address and telephone number of the Company’s professional advisors. 

36

 

 

Inventory List (if any)

      ADDITIONAL ITEMS for the final transaction:

1.   Bill of Sale
2.   Non-Lien Affidavit
3.   Seller's/Buyer's Affidavit
4.   Seller's/Buyer's Corporate Resolution
5.   Cooperation Agreement
6.   Affidavit of (Transfer of fictitious name, web site, yellow pages advertising, telephone)
7.   Tax Reprobation agreement
8.   Assignment of trade name
9.   Assignment of Customer Contracts and Accounts
10. Assignment of Purchase and Sale /Definitive Agreement Contract (If to a corporation)
11. Non-compete Covenant
12. Promissory Note
13. Security Agreement
14. UCC-1 Financing Statement
15. Assignment of Lease
16. Collateral Assignment of Lease
17. Employment/Consulting Agreement
18. Purchase Price Allocation
19. Inventory list/Adjustment Worksheet
20. List of Vendors/Deposits
21. Closing Statement

Contact us for a confidential discussion of your options. We will listen to your needs and find solutions that work for you.

 


 


Thank you for allowing us to help you.        
Headquarters Phone: 305.663.3494         Email: ibbr@internationalbrokerage.net

Home
| About Us | Careers | Contact Us | IBBR Remote Email Access | Agent Login