Due diligence checklist tailored to your deal, with research
Whether you are buying a small business, investing in a startup or signing a big supplier, a generic checklist misses the risks that matter for your deal. This prompt has your todo.is agent build a due diligence checklist for your type of deal, research public information about the company, flag what to ask the seller and track the documents you receive.
The prompt
- Create a due diligence checklist for [TYPE OF DEAL] of [COMPANY NAME AND WEBSITE] in [COUNTRY OR STATE]. The company is [SHORT DESCRIPTION]. Build an Excel tracker with sections for corporate and legal, financial, tax, customers and contracts, employees, IP and technology, operations, and [EXTRA AREAS], with columns for item, why it matters, document to request, owner, status and notes. Mark the 10 most important items for this deal. Then research public information: company registration, news, lawsuits or regulatory actions in public records, online reviews, and the founders’ public background. Write a 1-page Word summary of what you found, red flags, and questions to ask the seller. Read the documents I attach: [ATTACHED DOCUMENTS].
What to change
- [TYPE OF DEAL]: e.g. "buying a small business", "a seed investment", "a commercial lease" or "choosing a key supplier".
- [COMPANY NAME AND WEBSITE]: e.g. "Harbor Bike Repair LLC, harborbikes.example".
- [COUNTRY OR STATE]: Rules and public records differ by place, e.g. "California, USA".
- [SHORT DESCRIPTION]: e.g. "a 12-year-old bike shop with 2 locations and 7 staff, asking price $420,000".
- [EXTRA AREAS]: e.g. "real estate and lease", "environmental", "data privacy", or "none".
- [ATTACHED DOCUMENTS]: Attach what you have: financial statements, tax returns, the lease, customer list. Or write "none yet".
Example result
- Due diligence summary · Harbor Bike Repair LLC
- Deal: purchase of a small business · California · asking price $420,000 · fictional example
- Top 10 checklist items for this deal
- • 3 years of tax returns and profit and loss statements, compared with bank statements
- • Monthly sales for 24 months, to check seasonality and trends
- • The leases for both locations: years left, renewal options, whether they can transfer to you
- • Inventory count and age (bikes and parts), and how it is valued
- • Supplier agreements with the main bike brands; can dealer status transfer?
- • Employee list, pay, and any key mechanics likely to leave
- • Customer repair records and service plan liabilities
- • Any loans, liens or equipment leases
- • Business licenses and permits
- • Online reviews and reputation
- What public research found
- • Registration: active LLC, formed 12 years ago, same owner throughout
- • News: local feature on the second location opening; no negative stories
- • Public court records: one small claims case from 4 years ago over a repair, resolved
- • Reviews: 4.6 average across two review sites; recent complaints about wait times
- Red flags to ask about
- • Second location lease ends in 14 months with no renewal option listed. Ask the landlord before signing.
- • Sales dipped 11% last year in the attached P&L, while the listing says "growing".
- • One brand dealer agreement may not transfer to a new owner without the brand’s approval.
- Questions for the seller
- • Why are you selling, and will you stay for a handover period?
- • What explains last year’s sales drop?
- • Which staff are key, and have they been told?
- • Can we speak with the landlord and the main supplier before closing?
- Status tracker
- 74 items in the Excel file: 12 received, 5 reviewed, 57 to request.
- This is a research checklist, not legal or financial advice. Have a lawyer and an accountant review the deal before you sign.
How to do it with todo.is
- Copy the prompt, describe the deal and the company, and attach any documents you have.
- Paste it into todo.is on the Today screen.
- Your agent sends an Excel checklist tailored to the deal and a 1-page Word summary with red flags.
- As documents arrive, attach them and ask your agent to review them and update the tracker.
Tips for a better result
- Tailor the list to the deal. Buying a shop, investing in a startup and leasing a building have different big risks.
- Compare financial statements with bank statements and tax returns. Numbers that do not match are the classic red flag.
- Check that key contracts, leases and licenses can transfer to you.
- Bring in a lawyer and an accountant for any serious deal. Use the checklist to make their time count.
due diligence checklist: FAQ
- What is a due diligence checklist? It is a list of documents, facts and risks to check before a deal, such as buying a business or making an investment, covering legal, financial, tax, contracts, people and operations.
- How long does due diligence take? For a small business purchase, often several weeks to a few months, depending on how quickly the seller shares documents and how complex the business is.
- Can the agent access private records about the company? No. It researches public information and reads documents you attach. Private records come from the seller, and some official searches may need a lawyer or paid service.
- Is this legal advice? No. It is a research and organization tool. Have a lawyer and an accountant review the deal for your country or state.
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