1, background check of managers

2. Market evaluation

3. Complete sales and purchase orders

4. Environmental assessment

5, production operating system

6. Management information system (reporting system)

7, the method of financial forecasting and the accuracy of past forecasts.

8. Assumptions of sales volume and financial forecast

9. Verification of financial statements, sales and purchase documents

10. Current cash, accounts receivable, accounts payable and debts.

1 1. Possibility of loan

12, asset verification, inventory and equipment list verification

13, arrangement of salary, welfare and retirement fund

14, Lease, sale, purchase, employment and other contracts

15, potential legal disputes

Extended data:

The purpose of due diligence is to let buyers know as much as possible about the stocks or assets they want to buy. From the buyer's perspective, due diligence is risk management. For buyers and their financiers, M&A itself has various risks, such as the accuracy of the past financial books of the target company; Whether the main employees, suppliers and customers of the target company will stay after the merger; Whether there are any obligations that may lead to the disintegration of the operation or financial operation of the target company.

Therefore, it is necessary for the buyer to make up for the imbalance of information acquisition between buyers and sellers by implementing due diligence. Once the risks and legal issues are determined through due diligence, the buyer and the seller can negotiate on who should bear the relevant risks and obligations, and the buyer can decide under what conditions to continue the acquisition activities.