Commercial due diligence:
considers a company's market share and competitive positioning, including its future prospects
and growth opportunities. This will consider the company's supply chain from vendors to
customers, market analysis, sales pipeline, and R&D pipeline. This can also encompass a firm's
overall operations, including management, human resources, and IT.
Legal due diligence:
makes sure that a company has all of its legal, regulatory, and compliance eggs in a row. This
includes everything from pending litigation to intellectual property rights to being sure the
company was properly incorporated.
Financial due diligence:
audits a company's financial statements and books to make sure that there are no irregularities
and that the company is on solid financial footing.
Tax due diligence:
looks at the company's tax exposure, whether it may owe any back taxes, and where it can reduce
its tax burden going forward.