Templates
Risk Management
Financial Due Diligence Checklist
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Financial Due Diligence Checklist

1
Identify the target entity and its motivations for selling
2
Review the initial information memorandum
3
Develop a due diligence strategy
4
Gather initial financial statements
5
Review income statement, balance sheet, and cash flow statements
6
Evaluate overall financial health
7
Approval: Overall Financial Health
8
Check for fluctuations in historical earnings
9
Analyze historical trends
10
Approval: Historical Trends Analysis
11
Evaluate completeness of financial records
12
Obtain list of assets and verify ownership
13
Review outstanding debts/liabilities
14
Check for any litigations or contingent liabilities
15
Assess future revenue and profitability
16
Approval: Future Revenue And Profitability Assessment
17
Evaluate tax compliances
18
Review financial forecasts
19
Approval: Review of Financial Forecast
20
Consolidate the due diligence report