1. Financial Records and Performance:
This includes reviewing financial statements, tax returns, audited reports, and projections to assess the company's financial health, profitability, and growth potential.
2. Legal and Regulatory Compliance:
Analyzing legal documents, permits, licenses, and regulatory filings ensures that the company operates within the legal framework and complies with industry regulations.
3. Intellectual Property Rights:
Examining patents, trademarks, copyrights, and trade secrets helps evaluate the company's intellectual property portfolio and its protection.
4. Contracts and Agreements:
Reviewing contracts with customers, suppliers, employees, and other stakeholders helps identify any potential risks, liabilities, or dependencies.
5. Taxation and Financial Obligations:
Assessing tax returns, outstanding liabilities, and financial obligations ensures compliance with tax laws and identifies any potential financial risks.
6. Operational Infrastructure and Processes:
Analyzing the company's operational systems, facilities, technology, and processes helps evaluate efficiency, scalability, and potential areas for improvement.
7. Human Resources and Employment Matters:
Reviewing employee contracts, benefits, labor union relationships, and HR policies ensures compliance and helps assess the company's workforce stability and culture.
8. Customer and Supplier Relationships:
Evaluating customer and supplier contracts, satisfaction levels, and any existing disputes helps understand the strength of the company's relationships and potential business continuity risks.
9. Risk Assessment and Management:
Identifying and assessing potential risks such as legal, operational, reputational, or market risks helps mitigate uncertainties and make informed decisions.
10. Environmental and Social Responsibility:
Assessing the company's environmental impact, sustainability practices, and social responsibility initiatives aligns with ethical standards and evaluates potential risks or opportunities in these areas.
