��������Ƶ

A Due Diligence Checklist helps businesses and lawyers systematically investigate potential risks before major transactions like mergers, acquisitions, or property purchases. It's essentially a comprehensive roadmap that guides you through examining financial records, contracts, compliance issues, and legal obligations under Australian corporate law.

The checklist typically covers key areas required by ASIC guidelines and the Corporations Act, including financial statements, employee agreements, intellectual property rights, and pending litigation. Having this structured approach helps protect buyers from unexpected issues and ensures sellers meet their disclosure obligations under Australian law, while creating a clear paper trail of the investigation process.

Use a Due Diligence Checklist when preparing for any significant business transaction or investment in Australia. This includes mergers and acquisitions, commercial property purchases, business sales, or major supplier contracts. It's particularly important before signing binding agreements or making substantial financial commitments.

The checklist becomes essential during pre-transaction negotiations, helping both parties identify potential risks and compliance issues early. For ASX-listed companies, it's crucial during capital raising activities or when dealing with ASIC requirements. Many businesses also use it for internal audits, especially when reviewing subsidiaries or preparing for potential sale opportunities.

• Standard M&A Due Diligence Checklist: Focuses on company ownership, financial records, and commercial contracts - commonly used for business acquisitions
• Property Due Diligence Checklist: Covers title searches, zoning requirements, and environmental assessments for real estate transactions
• Legal Compliance Due Diligence Checklist: Emphasizes regulatory compliance, licenses, and permits under Australian law
• Financial Due Diligence Checklist: Concentrates on detailed financial analysis, tax obligations, and asset verification
• Vendor Due Diligence Checklist: Used by sellers to prepare documentation and identify issues before going to market

• Corporate Lawyers: Create and customize the checklist, ensuring it covers all relevant legal and regulatory requirements under Australian law
• Business Buyers: Use the checklist to guide their investigation of target companies and protect their interests during acquisitions
• Company Directors: Review and approve the checklist scope, often responsible for signing off on completed due diligence findings
• Financial Advisors: Focus on financial aspects, helping verify accounts and assess financial risks
• Compliance Officers: Ensure the checklist aligns with ASIC requirements and internal compliance frameworks

• Transaction Scope: Define the exact type and size of transaction to customize your checklist focus areas
• Key Documents: Gather essential company records, including ASIC extracts, financial statements, and major contracts
• Timeline Planning: Set realistic deadlines for information gathering and review phases
• Team Assembly: Identify who needs to contribute expertise - legal, financial, operational staff
• Access Rights: Arrange necessary permissions for data rooms and confidential information
• Review Process: Establish clear procedures for documenting findings and flagging issues

• Corporate Information: Company structure, shareholdings, and ASIC compliance status
• Financial Records: Balance sheets, profit/loss statements, tax compliance, and banking relationships
• Legal Obligations: Material contracts, licenses, permits, and regulatory approvals
• Asset Verification: Property titles, equipment ownership, intellectual property rights
• Employment Matters: Staff agreements, superannuation compliance, workplace policies
• Risk Assessment: Litigation history, insurance coverage, environmental compliance
• Confidentiality Terms: Data protection measures and information handling protocols

While a Due Diligence Checklist and a Due Diligence Report might seem similar, they serve distinct purposes in Australian business transactions. The checklist guides the investigation process, while the report presents the findings and conclusions drawn from that investigation.

• Timing and Use: The checklist is used before and during the investigation process to ensure nothing is missed, while the report is created after completing the due diligence process
• Format and Content: The checklist contains questions and items to investigate, while the report provides detailed analysis and recommendations based on findings
• Legal Status: The checklist is an internal working document, while the report often becomes part of the formal transaction documentation
• Audience: The checklist primarily guides the due diligence team, while the report informs decision-makers and becomes part of the deal record