MERGERS & ACQUISITIONS (M&A) FINANCIAL DUE DILIGENCE CHECKLIST 2026

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--- EXECUTIVE SUMMARY & DEAL OVERVIEW ---
[ ] Transaction Name
[ ] Target Closing Date
[ ] Deal Structure Type (Asset Purchase, Stock Purchase, Merger, Reverse Triangular Merger)
[ ] Estimated Deal Value
[ ] Transaction Overview & Strategic Rationale
[ ] Letter of Intent (LOI)
[ ] Lead Auditor Approval

--- HISTORICAL FINANCIAL STATEMENT VERIFICATION ---
[ ] Audit Period Start Date
[ ] Audit Period End Date
[ ] Audited Financial Statements
[ ] Accounting Standard Applied (IFRS, US GAAP, Other)
[ ] Total Historical Revenue (Last FY)
[ ] Verified Statement Components (Balance Sheet, Income Statement, Cash Flow Statement, Notes to Financial Statements)
[ ] Significant Accounting Discrepancies
[ ] Reviewer Authentication

--- REVENUE & QUALITY OF EARNINGS (QOFE) ANALYSIS ---
[ ] Revenue Recognition Policy Overview
[ ] Analysis of Non-Recurring Income/Expenses
[ ] Total Annualized Revenue (Current Year)
[ ] Revenue Concentration Risk Factors (High Customer Concentration (>10% per client), High Product/Service Concentration, Geographic Concentration Risk, Seasonal Revenue Fluctuations)
[ ] Revenue Breakdown by Product/Service Line
[ ] Revenue Growth Trend (Increasing, Stable, Decreasing)

--- BALANCE SHEET & ASSET INTEGRITY ---
[ ] Audit Completion Date
[ ] Fixed Asset Register (Current Year)
[ ] Total Verified Net Working Capital
[ ] Identified Asset Discrepancies (Inventory Mismatch, Fixed Asset Valuation Error, Unrecorded Liabilities, Depreciation Error)
[ ] Summary of Asset Valuation Findings
[ ] Lead Auditor Verification

--- TAX COMPLIANCE & REGULATORY STANDING ---
[ ] Last Tax Filing Date
[ ] Tax Jurisdiction Scope (Domestic Only, Domestic & International)
[ ] Tax Types Subject to Audit (Income Tax, Sales & Use Tax, Payroll Tax, VAT/GST, Property Tax)
[ ] Tax Audit Notices
[ ] Unresolved Tax Liabilities
[ ] Tax Compliance Officer Verification

--- ACCOUNTS PAYABLE & LIABILITY ASSESSMENT ---
[ ] Total Outstanding Trade Payables Value
[ ] Date of Last Accounts Payable Aging Review
[ ] Identified Unrecorded Liabilities (Accrued Expenses, Unrecorded Legal Contingencies, Lease Obligations, Pending Litigation Claims, Intercompany Payables)
[ ] Accounts Payable Aging Report (Current)
[ ] Completeness of Accrual Documentation (Fully Documented, Partially Documented, Missing Documentation)
[ ] Notes on Identified Financial Risks or Discrepancies
[ ] Due Diligence Lead Verification

--- BUDGETING, FORECASTING & PROJECTIONS ---
[ ] Budget Period Start Date
[ ] Budget Period End Date
[ ] Projected Revenue Growth Rate (%)
[ ] Forecasting Methodology (Zero-Based Budgeting, Incremental Budgeting, Driver-Based Forecasting, Rolling Forecast)
[ ] Key Economic Assumptions (Inflation Rate Adjustments, Currency Exchange Fluctuations, Market Demand Volatility, Labor Cost Increases, Raw Material Price Changes)
[ ] Financial Projection Model
[ ] Variance Analysis Summary
[ ] CFO/Controller Approval

--- INTERNAL CONTROLS & GOVERNANCE REVIEW ---
[ ] Control Environment Maturity Level (Optimized, Established, Developing, Ad-hoc/Non-existent)
[ ] Identified Control Deficiencies (Lack of Segregation of Duties, Insufficient Documentation, Unauthorized Access to Financial Systems, Inadequate Reconciliations, None Identified)
[ ] Detailed Description of Control Gaps
[ ] Internal Audit Reports & Policy Documents
[ ] Reviewer Affirmation

--- IT SYSTEMS & FINANCIAL SOFTWARE INTEGRATION ---
[ ] Current Primary ERP System (NetSuite, SAP, Oracle, QuickBooks, Microsoft Dynamics 365, Other)
[ ] Software Modules Under Review (Accounts Payable Automation, Accounts Receivable/Billing, Payroll & HRIS, Inventory Management, Tax Compliance Software, Fixed Asset Management)
[ ] Data Migration Risk Assessment
[ ] Software Architecture & Integration Map
[ ] System Integration Deadline
[ ] Estimated IT Integration Budget (USD)

--- POST-MERGER INTEGRATION (PMI) FINANCIAL READINESS ---
[ ] Integration Priority Level (Critical, High, Medium, Low)
[ ] Post-Merger Financial Close Date
[ ] Unified Chart of Accounts Modules to Align (Accounts Payable, Accounts Receivable, Fixed Assets, Payroll, Inventory, Taxation)
[ ] New Entity Legal Name
[ ] Finalized Integration Project Plan
[ ] Identified Financial Integration Risks
[ ] Finance Director Approval

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