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Due Diligence Checklist: Company

by Deer Isle Group Jan 18, 2023

SAMPLE DUE DILIGENCE CHECKLIST

COMPANY

Purpose

The purpose of an investment due diligence checklist is for an investor to make sure that they have completed full due diligence on a potential investment opportunity. In addition, to the extent that an investment bank or broker/dealer is utilized in a capital raise, the investment bank or broker/dealer is required, by regulation, to complete their own due diligence process before offering a potential investment opportunity to potential investors. The due diligence that the investment bank or broker/dealer uses in their process will also be used by investors for their investment decision making.

In order for an investor to make a well-informed investment decision, they typically have a standard set of questions and required information that they need to review before they are willing to make an investment. The areas covered in a due diligence checklist are related to helping an investor make a reasonable decision about the risk adjusted return of an investment opportunity.

CAPITAL SEEKER/ISSUER PROVIDESINVESTOR GOAL
Transparency in order to allow an investor access to complete informationMaximum transparency in order to make an informed investment decision
Information that supports investment return potentialDemonstrated return potential
Risk and mitigation informationUnderstand and mitigate potential risks

Covered Topics

The Due Diligence checklist typically covers standard topics such as (see full sample due diligence checklist here):

  • Issuer Review
  • Governance and Team
  • References and Vendors
  • Presentations/Investor Communications/DDQ
  • Company and Financial Analysis
  • Securities and Offering Documentation
  • Regulatory, Compliance and Operations

Having well-constructed and complete information on these basic topics provide the information that an investor required to complete their due diligence process.

Result

The result of well-constructed and complete due diligence information is a seamless and well received capital raising process which increases a capital seeker/issuer’s chances to raise capital. Investors respect and appreciate thoughtful due diligence information since it shortens their due diligence process significantly meaning they are able to make an investment decision more quickly.

Given most capital seeker / issuer’s preference for a quick and seamless capital raise as well as investor and capital seeker / issuer’s interest to have a seamless due diligence process, the capital seeker /issuer and investors interests are aligned in having complete due diligence information.

Contact Us:

Deer Isle Group

info@deerislegroup.com

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Founded in 2007, Deer Isle is a differentiated investment bank that empowers Capital Participants with the right tools to ensure transparent, smooth, and efficient direct capital markets outreach. Since our founding, we have successfully transacted over $5 billion in capital, through Deer Isle Capital, LLC (our FINRA registered broker/dealer), for companies and funds in a wide variety of security types, sectors, and geographies.  

The foundation of our approach is innovative unbundled capital capabilities, expertise, and guidance that are customizable depending upon our client’s requirements.  

Our services, available on an “as needed” basis include:

Strategic Capital ConsultingTM (“Deer Isle Bootcamp”) to prepare for a capital or M&A transaction including Strategic Capital PositioningTM, Strategic Capital Modeling, Due Diligence Preparation and Capital Markets Landscaping.

Beacon (“Proprietary Technology”) offers “Direct Issuance/Contact” capabilities, as well as Capital Markets Brand Building, which helps ensure capital markets success today and in the future from a relevant universe of 10,000+ institutional (fiduciary) capital markets organizations/45,000+ institutional capital markets people. 

Closing Advisory/Guidance (including “Shepherding”) expertise, through Deer Isle Capital, for structuring, negotiating, and completing a successful capital/M&A transaction.