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A Due Diligence Report is a detailed assessment that Filipino businesses use to evaluate potential risks and opportunities before making major decisions like mergers, acquisitions, or investments. It's essentially a thorough investigation that covers financial records, legal compliance, corporate documents, and operational health of a target company.

Under Philippine securities laws and SEC regulations, these reports help protect investors and companies by uncovering potential issues like hidden liabilities, regulatory violations, or pending litigation. The report typically includes analysis of business permits, tax compliance, employment practices, and property titles - crucial elements for informed decision-making in the Philippine business landscape.

Get a Due Diligence Report before making any major business investment in the Philippines, especially when buying companies, entering joint ventures, or acquiring significant assets. The SEC and Philippine corporate laws mandate thorough investigation of target businesses to protect investors and ensure transparent transactions.

Critical times to commission this report include mergers with local companies, purchasing commercial real estate, investing in Philippine startups, or taking over existing businesses. The report becomes particularly important when dealing with companies that have complex ownership structures, multiple subsidiaries, or operations across different Philippine regions where regulatory requirements may vary.

• Due Diligence Audit Report: Most comprehensive type used for mergers and acquisitions in the Philippines, covering financial health, legal compliance, and operational risks. This report typically includes detailed sections on corporate structure, SEC compliance, tax status, employment practices, asset verification, and pending litigation. It can be customized based on industry focus (manufacturing, real estate, technology) or transaction scope (full acquisition vs. minority investment).

• Investment Banks and Private Equity Firms: Commission Due Diligence Reports when evaluating potential acquisitions or investments in Philippine companies
• Corporate Lawyers and Legal Teams: Draft and review these reports, ensuring compliance with SEC regulations and Philippine corporate laws
• Accounting Firms: Conduct financial analysis and verify tax compliance status as part of the due diligence process
• Business Owners and Executives: Use findings to make informed decisions about mergers, acquisitions, or major investments
• Regulatory Bodies: Reference these reports during investigations or when monitoring corporate transactions for compliance

• Company Documents: Gather SEC registration, articles of incorporation, business permits, and tax compliance certificates
• Financial Records: Collect audited financial statements, bank records, and major contracts from the past 3 years
• Legal Status: Document pending litigation, regulatory compliance history, and intellectual property rights
• Operational Details: List major assets, employee records, environmental compliance, and key business relationships
• Report Structure: Use our platform's template to ensure comprehensive coverage of all required sections under Philippine law and SEC guidelines

• Executive Summary: Clear overview of findings, scope, and methodology used in the investigation
• Corporate Information: Complete analysis of SEC registration, ownership structure, and corporate governance
• Financial Assessment: Detailed review of financial statements, tax compliance, and material obligations
• Legal Status: Documentation of permits, licenses, litigation history, and regulatory compliance
• Risk Analysis: Identification of potential legal, operational, and financial risks under Philippine law
• Verification Statement: Declaration of the report's completeness and compliance with SEC requirements

A Due Diligence Report differs significantly from a Due Diligence Checklist in both scope and function within Philippine business practice. While both documents support thorough business investigations, they serve distinct purposes in the due diligence process.

• Depth and Analysis: The Report provides detailed findings, interpretations, and risk assessments, while the Checklist simply lists items to verify
• Legal Standing: Reports carry more weight in legal proceedings and SEC filings, serving as official documentation of findings. Checklists are primarily internal tools
• Professional Input: Reports require expert analysis and interpretation from legal and financial professionals, whereas Checklists can be completed by company staff
• Timeline and Use: Reports represent the final outcome of due diligence investigations, while Checklists guide the initial information-gathering process