Due Diligence Report: Overview and Verticals

Flagging System: We flag each section so that you can easily assess it and delve deeper where necessary.

• Red Flag: Indicates a critical failure that requires immediate attention or mitigation beforeproceeding.
• Yellow Flag: This signifies a moderate concern that should be monitored and addressed.
• Green Flag: Denotes no immediate concerns.
• Blue Flag: Highlights potential opportunities or strengths that can be leveraged.
• Pink  Flag – Information unavailable or not provided

Risk Score System: We assign a risk score to each section to denote examinations that may pose immediate, existential, or unknown risks. Risk scores are assigned specific explanations and cross-checks where applicable.

• Very Low Risk
• Low Risk
• Moderate Risk
• High Risk
• Very High Risk
• Risk score unattainable or speculative

1. Executive Summary

• Overview of the investigation process.
• Key findings and conclusions.
• Overall risk assessment and flagged items summary.
• Communication summary chart. Verbal to documented, time frame response, variants and anomolies.    

2. Company Background

• Company history and structure.
• Key stakeholders and management team profiles.
• Mission, vision, and strategic goals.
• Dun & Bradstreet scoring, asset investigation, contract checks.

3. Personal Background Checks

• Profiles of key executives and board members.
• Criminal record checks.
• Financial status and credit history.
• Professional qualifications and work history.
• Risk score and flags.

4. Business Reviews

• Market position and industry standing.
• Competitor analysis.
• Customer base and market share.
• Sales and marketing strategies.
• Risk score and flags.

4a. Business Reviews (Valuation Overview)

• Valuation Overview
• Net Debt Assessment
• Qualitative Assessment.
• Peer Review.

5. Financial Due Diligence

• Review of financial statements (balance sheet, income statement, bank reconciliation, cash flow).
• Analysis of financial ratios and trends.
• Tax compliance and outstanding liabilities.
• Audit reports and findings.
• Risk score and flags.

6. Document and Statement Verification

• Verification of legal documents, contracts, and agreements.
• Intellectual property rights and patents.
• Compliance with regulatory requirements.
• Verification of permits, licenses, and certifications.
• Risk score and flags.

7 Pro Forma Analysis

• Projected financial statements.
• Revenue forecasts and growth potential.
• Cost analysis and margin projections.
• Sensitivity analysis and risk assessment.
• Risk score and flags.

8. Operational Due Diligence

• Review of business operations and supply chain.
• Quality control and production efficiency.
• IT systems and cybersecurity measures.
• HR policies and workforce analysis.
• Risk score and flags.

9. Economic Analysis

• Economic environment and its impact on the business.
• Analysis of local, national, and global economic trends.
• Inflation rates, interest rates, and exchange rates.
• Economic forecasts and potential risks.
• Risk score and flags.

10. Political Climate

• Assessment of the current political environment.
• Impact of political stability or instability on the business.
• Regulatory and policy changes affecting the industry.
• Analysis of government relations and lobbying activities.
• Risk score and flags.

11. Local Demographics

• Analysis of the target market demographics.
• Population growth trends and projections.
• Consumer behavior and preferences.
• Socioeconomic factors influencing the market.
• Risk score and flags.

12. Micro and Macro Economic Trends

• Industry-specific trends and challenges.
• Analysis of supply and demand dynamics.
• Impact of technological advancements on the industry.
• Global economic trends and their implications for the business.
• Risk score and flags.

13. Real Estate Due Diligence

• Appraisal and Comps.  
• Zoning: Analysis of current zoning laws and potential changes.
• Occupancy rate verification & demographic information.
• Regional Demographic Analysis: Assessment of demographic trends affecting real estate and, including population density, age distribution, and household income levels.
• Construction Company Capabilities: Evaluation of local construction companies'capabilities, including their track record, project management expertise, resource availability, and reputation within the industry. Assessment of the ability to meet project timelines and budgets.
• Capability and Experience.  

13. Construction Due Diligence

• Entitlement: Review of land use rights and entitlements.
• Permitting: Verification of required permits for current and future projects.
• Impact Assessment and Co-Operation Analysis.
• Contractor Review and Labor Assessment.  
• Risk score and flags.

14. Summary Risk Assessment

• Identification of key risks and liabilities.
• Legal and regulatory risks.
• Financial and operational risks.
• Mitigation strategies and contingency plans.
• Risk score and flags.

15. Recommendations

• Strategic recommendations based on findings.
• Actionable steps for risk mitigation.
• Potential areas of improvement.
• Final assessment.
• Summary of flagged items and recommended actions.

Appendices

• Supporting documents and data.
• Detailed findings and analyses.
• Contact information for key personnel involved in the due diligence process.
• Credit Checks and all third party reports.

Due to trade secrets, process specifics, and confidentiality issues, we do not furnish fulll sample reports. Please furnish details for International Infrastructure and Industrial Projects, industrial initiatives, logistics, energy, and large construction projects.