due-diligenceTransaction due diligence skill for M&A, investment, and business transactions. Use when the user needs assistance with due diligence checklists, diligence review, risk assessment, diligence reports, or data room organization. Triggers on keywords like "due diligence", "diligence", "data room", "DD checklist", "diligence findings", "risk assessment", "trans…
Independent GitHub snapshot · Automated classification · Original documentation governs
This skill provides expert guidance for conducting comprehensive due diligence in business transactions.
┌─────────────────────────────────────────────────────────────────┐
│ DUE DILIGENCE PROCESS │
├─────────────────────────────────────────────────────────────────┤
│ │
│ Scoping → Information → Review → Analysis → Reporting │
│ Request │
│ │
│ ↓ ↓ ↓ ↓ ↓ │
│ │
│ - Define - Send DDL - Document - Risk - Executive │
│ scope - Set up review assessment summary │
│ - Assign data room - Expert - Issue - Detailed │
│ teams - Track consult tracking findings │
│ - Create responses - Follow-up - Mitigation - Risk │
│ timeline questions strategies matrix │
│ │
└─────────────────────────────────────────────────────────────────┘
| Team | Focus Areas |
|---|---|
| Legal | Corporate, contracts, litigation, IP, employment |
| Financial | Financials, accounting, tax, working capital |
| Business | Operations, customers, market, strategy |
| Technical | Technology, products, cybersecurity |
| Environmental | Environmental compliance, liabilities |
| HR | Employee matters, benefits, culture |
1. FORMATION DOCUMENTS
□ Certificate/Articles of Incorporation
□ Bylaws/Operating Agreement
□ Amendments
□ Good standing certificates
2. CAPITALIZATION
□ Cap table (fully diluted)
□ Stock ledger
□ Option/warrant agreements
□ Convertible instruments
3. GOVERNANCE
□ Board minutes (3-5 years)
□ Shareholder minutes
□ Written consents
□ Committee minutes
4. EQUITY AGREEMENTS
□ Shareholder agreements
□ Voting agreements
□ Registration rights
□ ROFR agreements
5. CUSTOMER CONTRACTS
□ Top 20 customers by revenue
□ Standard forms
□ Customer concentration analysis
□ Pricing arrangements
6. SUPPLIER CONTRACTS
□ Top 20 suppliers
□ Single-source suppliers
□ Key terms and pricing
7. STRATEGIC AGREEMENTS
□ Joint ventures
□ Partnerships
□ Distribution agreements
□ License agreements
8. REAL ESTATE
□ Leases
□ Owned property
□ Environmental assessments
9. FINANCIAL STATEMENTS
□ Audited (3 years)
□ Interim statements
□ Management accounts
□ Audit letters
10. DEBT & FINANCING
□ Credit agreements
□ Loan documents
□ Security agreements
□ Compliance certificates
11. TAX
□ Tax returns (3-5 years)
□ Tax provisions
□ IRS correspondence
□ Transfer pricing
12. EMPLOYMENT
□ Employee census
□ Executive agreements
□ Offer letter forms
□ Handbook/policies
13. COMPENSATION
□ Compensation data
□ Bonus plans
□ Equity plans
□ Commission structures
14. BENEFITS
□ Benefit plan documents
□ 401(k) plans
□ Insurance policies
□ COBRA compliance
15. IP PORTFOLIO
□ Patent list and status
□ Trademark registrations
□ Copyright registrations
□ Domain names
16. IP AGREEMENTS
□ License agreements (in/out)
□ Assignment agreements
□ Development agreements
□ Open source usage
17. LITIGATION
□ Pending matters
□ Threatened claims
□ Settlement agreements
□ Insurance coverage
18. REGULATORY
□ Permits and licenses
□ Government correspondence
□ Compliance certifications
□ Investigation history
📁 1. Corporate
📁 1.1 Formation Documents
📁 1.2 Good Standing
📁 1.3 Capitalization
📁 1.4 Board Minutes
📁 1.5 Shareholder Minutes
📁 1.6 Equity Agreements
📁 2. Financial
📁 2.1 Audited Financials
📁 2.2 Interim Financials
📁 2.3 Budget & Projections
📁 2.4 Debt Documents
📁 3. Tax
📁 3.1 Tax Returns
📁 3.2 Tax Provisions
📁 3.3 Correspondence
📁 4. Material Contracts
📁 4.1 Customer Contracts
📁 4.2 Supplier Contracts
📁 4.3 Strategic Agreements
📁 4.4 Real Estate
📁 5. Intellectual Property
📁 5.1 Patents
📁 5.2 Trademarks
📁 5.3 Licenses
📁 5.4 Software
📁 6. Employment
📁 6.1 Agreements
📁 6.2 Compensation
📁 6.3 Benefits
📁 6.4 Policies
📁 7. Litigation
📁 7.1 Pending
📁 7.2 Threatened
📁 7.3 Settled
📁 8. Regulatory
📁 8.1 Permits
📁 8.2 Compliance
📁 8.3 Environmental
📁 9. Insurance
📁 10. IT/Technology
| Category | Impact | Examples |
|---|---|---|
| Critical | Deal breaker | Fraud, undisclosed litigation, title defects |
| High | Price adjustment | Material contract issues, key employee departure |
| Medium | Post-close item | Compliance gaps, documentation deficiencies |
| Low | Note for file | Minor administrative issues |
| # | Issue | Category | Risk Level | Deal Impact | Mitigation |
|---|-------|----------|------------|-------------|------------|
| 1 | [Finding] | Corporate | Critical | [Impact] | [Mitigation] |
| 2 | [Finding] | Contracts | High | [Impact] | [Mitigation] |
| 3 | [Finding] | Employment | Medium | [Impact] | [Mitigation] |
Corporate
Contracts
Financial
Employment
IP
Litigation
EXECUTIVE SUMMARY
TRANSACTION OVERVIEW
- Target: [Company]
- Deal Structure: [Stock/Asset Purchase]
- Purchase Price: $[Amount]
- Closing Date: [Anticipated]
DILIGENCE SCOPE
[Description of scope and limitations]
KEY FINDINGS SUMMARY
1. [Critical/High Risk Issue #1]
2. [Critical/High Risk Issue #2]
3. [Material Issue #3]
DEAL IMPACT
[Overall assessment and recommendations]
RECOMMENDED ACTIONS
1. [Pre-closing requirement]
2. [Purchase agreement protection]
3. [Post-closing item]
FINDING: [Title]
Category: [Corporate/Contracts/IP/Employment/Litigation/Tax/Other]
Risk Level: [Critical/High/Medium/Low]
Description:
[Detailed description of finding]
Documents Reviewed:
- [Document 1]
- [Document 2]
Analysis:
[Legal/business analysis of the issue]
Deal Impact:
[How this affects the transaction]
Recommended Mitigation:
[Suggested resolution]
Questions for Seller:
1. [Question]
2. [Question]
| Phase | Duration | Activities |
|---|---|---|
| Week 1 | Setup | Send DDL, organize team, data room access |
| Week 2-3 | Initial Review | Review priority documents, identify issues |
| Week 4 | Deep Dive | Follow-up questions, expert consultations |
| Week 5 | Analysis | Risk assessment, findings compilation |
| Week 6 | Reporting | Draft report, team review, deliver |
For detailed guidance:
references/checklist-templates.md - Due diligence request listsreferences/report-templates.md - Report format examplesreferences/risk-matrices.md - Risk assessment frameworks