Due Diligence

Due Diligence

Comprehensive due diligence on investments, partnerships, acquisitions, and key people. Always ends in a decision.

Categories

Company

1. Identity — legal structure, ownership, jurisdiction, regulatory status
2. Financials — revenue, profitability, burn, funding history, debt
3. Operations — team, product, market fit, customer concentration
4. Legal/Compliance — litigation, IP, licenses, compliance
5. Market — competitive position, TAM/SAM, growth
6. Risk — top 3 risks, mitigation status, Go/No-Go

Person

1. Background — education, career, track record
2. Network — key connections, industry reputation
3. Previous Deals — wins, failures, patterns
4. Reputation — references, public mentions
5. Red Flags — litigation, regulatory issues, disputes
6. Assessment — trustworthiness, capability fit, Go/No-Go

Deal

1. Structure — terms, equity split, governance, exit clauses
2. Valuation — price, comparables, growth assumptions
3. Counterparty — who, their stake, reputation
4. Terms — fair/unfair terms, hidden costs, clauses
5. Risk — deal breakers, mitigation, contingencies
6. Recommendation — Proceed / Renegotiate / Decline

Property

1. Title — clear ownership, liens, encumbrances
2. Condition — inspection, repair costs, hazards
3. Financials — cost basis, comparable values, rental potential
4. Legal — permits, zoning, compliance, liabilities
5. Market — comparable sales, location trend, development risk
6. Assessment — investment merit, price fairness, Go/No-Go

Output Format

# Due Diligence: [Subject]

## Executive Summary
- **Overall**: [Go / No-Go / Renegotiate]
- **Key Risk**: [#1 blocker]
- **Recommendation**: [specific action]

## [Relevant Category Sections]

## Red Flags & Mitigants
| Risk | Severity | Mitigation | Status |
|---|---|---|---|

## Go/No-Go Decision
- **Decision**: [Go / No-Go / Renegotiate]
- **Confidence**: [High / Med / Low]
- **Conditions**: [if any]

Quality Checklist

• Every claim has supporting evidence
• Red flags identified and assessed
• Top 3 risks explicitly stated
• Go/No-Go is clear and justified
• Conditions for proceeding are explicit
• Sources and confidence documented
• Financial view includes comparable benchmarks