1. ASSETS OF THE BUSINESS:
1.1. Tangible assets inclusive of land, buildings, machinery, equipment, vehicles, and inventory.
1.2. Financial records pertaining to accounts receivable, accounts payable, and other prepaid expenses.
1.3. Detailed records of customers for the preceding three financial years.
1.4. Disclosure of assets utilized in the business but not owned by the company (e.g., personally owned or leased assets).
2. LIABILITIES OF THE BUSINESS:
2.1. Documentation of all business credit facilities, encompassing Lines of Credit (LOCs), loans, etc.
2.2. Records of company loans that have been personally guaranteed, inclusive of equipment financing and leases.
2.3. Comprehensive details of leasehold properties, supplemented with copies of associated lease agreements.
3. FINANCIAL INFORMATION:
3.1. Banking particulars (name and address of the bank, contact details of the account manager).
3.2. Latest copies of the financial statements.
3.3. Contact details for the principal accountant.
3.4. Contact information for the company’s appointed accountant.
3.5. Registration details for GST Number, PST Number, and other tax or CRA account numbers pertinent to the business.
4. EMPLOYEES & SUB-CONTRACTORS:
4.1. Records of all employees, complemented with any extant written agreements.
4.2. Details of employees on disability or extended leave.
4.3. Comprehensive listing of employee details: salaries, wage rates, positions, tenure, and any other contractual arrangements or understandings.
4.4. Complete catalog of bonuses, deferred compensations, profit-sharing, pensions, stock options, and other employee benefit plans.
5. CONTRACTS AND AGREEMENTS:
5.1. Copies or records of all warranty agreements or a comprehensive list of warranties extended by the business.
5.2. Documentation on contractors, preferably with existing written agreements.
5.3. Documentation on suppliers, complemented with any written agreements.
5.4. Disclosure and records of any existing leases.
6. LICENSES, PERMITS, AND INSURANCE:
6.1. Copies of all pertinent licenses and governmental permits associated with the business.
6.2. Current insurance policies held by the business.
7. INTELLECTUAL PROPERTY:
7.1. Business contact details, inclusive of telephone and fax numbers, website URLs, and social media account handles.
7.2. Records of all intellectual property: trademarks, patents, business names, trade names, and any other IP assets.
*****This checklist is a guideline for due diligence purposes and may require further customization based on specific transactional details.
Always consult with a lawyer and accountant to ensure completeness and relevance.
