Due Diligence Report

Due Diligence Report

Deliver a structured legal risk report that supports deal decisions and negotiation strategy.

Prerequisites

1. Transaction overview — structure, parties, valuation, timeline, governing law, closing conditions.
2. Data room index — document list with dates, versions, and confidentiality labels.
3. Diligence scope — materiality thresholds (revenue %, dollar threshold, key customers).
4. Deal sensitivities — regulatory approvals, IP dependencies, key contracts, employee retention.
5. Prior work product — existing diligence memos or red-flag lists, if any.

Output Structure / Process

1) Report Sections

1. Executive summary — top 5–10 risks, required approvals, open items.
2. Risk rating framework.
3. Findings matrix (issue-level table).
4. Area analyses: Corporate/Cap Table, Material Contracts, Litigation/Claims, Regulatory/Compliance, IP/Technology, Employment/Benefits, Real Estate/Leases, Taxes, Data Privacy/Cybersecurity, Environmental, Insurance, Other as applicable.
5. Open items and follow-up requests.
6. Deal protections and drafting recommendations.

2) Risk Ratings

3) Findings Matrix Template

4) Area Checklist

5) Executive Summary Template

Executive Summary
- Critical risks: [Issue | Impact | Required action]
- Significant risks: [Issue | Impact | Proposed deal protection]
- Required approvals: [HSR/CFIUS/Industry/Other]
- Open items: [Missing docs or confirmations]

6) Deal Protections Mapping

7) Citation Format

• Quote only material clauses; cite as DocName §X (Date).
• Flag missing or inconsistent documents in the open items section.

Guidelines

• Maintain neutral, risk-focused tone; avoid advocacy.
• Tie each issue to evidence and transaction impact.
• Use [VERIFY] for any legal citation or regulatory threshold not confirmed.
• Assume U.S. transaction unless specified; call out non-U.S. jurisdictions explicitly.
• Separate factual findings from recommendations.
• Do not invent documents or confirm approvals without evidence.