Due Diligence Checklist: What You Need to Know | Axiom Law (2024)

FAQs

Due Diligence Checklist: What You Need to Know | Axiom Law? ›

This element of due diligence examines financial aspects of the business and can include trading data, balance sheet, and the financial forecast for the company. Things to consider include but is not limited to: company accounts and statements highlighting cash flow, including profit and loss.

This element of due diligence examines financial aspects of the business and can include trading data, balance sheet, and the financial forecast for the company. Things to consider include but is not limited to: company accounts and statements highlighting cash flow, including profit and loss.

Intangible Factors. In addition to the four key principles of people, performance, philosophy, and process, four intangible factors can also play a role in manager selection: passion, perspective, purpose, and progress.

Below, we take a closer look at the three elements that comprise human rights due diligence – identify and assess, prevent and mitigate and account –, quoting from the Guiding Principles.

A due diligence report should capture these key elements. Executive summary, company overview, purpose, due diligence (financial, legal, operational, commercial, market, environmental and regulatory), insurance and risk management, growth prospects and recommendations.

The standard of diligence refers to the level of care, caution, and thoroughness that is expected in a particular context. It is often used in the field of human rights law to determine the actions that states should take to address various issues, such as racial discrimination and violence against women.

How to prepare a due diligence report? ›

Across most industries, a comprehensive due diligence report should include the company's financial data, information about business operations and procurement, and a market analysis. It may also include data about employees and payroll, taxes, intellectual property, and the board of directors.

What are 5Ps of due diligence? Due diligence offers a comprehensive framework designed on the principle of 5Ps which are prevention, protection, prosecution, punishment and provision of redress.

A due diligence check involves careful investigation of the economic, legal, fiscal and financial circ*mstances of a business or individual. This covers aspects such as sales figures, shareholder structure and possible links with forms of economic crime such as corruption and tax evasion.

Simplified due diligence is the lowest level of due diligence that can be completed on a customer. This is considered appropriate where there is little opportunity or risk of your services or customer becoming involved in money laundering or terrorist financing.

There are many possible examples of due diligence. Some common examples include investigating the financials of a company before making an investment, researching a person's background before hiring them, or reviewing environmental impact reports before committing to a construction project.