Sample Due Diligence Information Request List for US Investors

General UK Due Diligence Information Request List to be used by US Investors in UK Private Companies can be accessed below.

What is Due Diligence?

Due diligence is the process by which a proposed investor in or buyer of a company investigates the company’s business, people, records and documents.

Due diligence is designed to make the investor or buyer understand the risks and liabilities of the business, to support the value placed on the investment or purchase price and to highlight any key issues that may need further investigation.

The content of the Due Diligence Information Request List will vary depending on the type of business being examined.

Most Due diligence Information Request Lists cover: Corporate Information, Information relating to the Business and Assets, Employment and HR, Pensions, Property, IP and IT, Data Protection, Litigation, Disputes, Claims and Regulatory Matters, Insurance, Finance and Tax

Sellers should try to ensure from as early a stage as possible that they are prepared by getting their house in order so that when an investor or buyer comes knocking, they are ready to disclose and respond.

Most Sellers will set up a secure cloud data room that will house all of the relevant documents in orderly and an easy to use filing system, by creating folders for specific types of documents and then uploading new files each time a new document comes to light… For each round of investment, or at the point of exit of a company, a seller can rest assured knowing that all the documents are accessible in one place.

The process in the UK mirrors the US, although the information requested is tailored to UK corporate bodies.

Here is a sample Due Diligence Information Request List: