An Outline of What’s to Come:

A. Organization and Good Standing.

  • The Company’s Articles of Incorporation and all amendments thereto.

  • The Company’s organizational chart.

  • The Company’s list of shareholders and number of shares held by each.

  • A Certificate of Good Standing from the Secretary of State of the state where the Company is incorporated.

B. Financial Information.

  • Financial statements for three years (balance sheets and income statements)

  • Monthly bank statements/credit card statements to substantiate financials

  • The Company’s credit report, if available.

  • Any projections, capital budgets and strategic plans, if developed

  • A schedule of all liabilities,

  • A schedule of inventory

  • Aging A/R & A/P

  • A description of depreciation methods and changes in accounting methods over the past five years.

C. Physical Assets.

  • A schedule of fixed assets with estimated FMV

  • A schedule of major equipment and their aging and condition (when do items need to be replaced)

D. Real Estate.

  • Copies of all real estate leases.

  • Copies of any other leases (equipment, etc.)

  • Plat of survey

  • Recent professional appraisals

  • Tax schedules of property

  • If property recently improved, all receipts and records of work done

E. Employees and Employee Benefits.

  • A list of employees including positions, current salaries and bonuses paid during last three years, and years of service.

  • All employment contracts and employee handbook.

  • A description of all employee problems within the last three years, including alleged wrongful termination, harassment, and discrimination.

  • A description of worker’s compensation claim history, if any (loss runs from insurance agent)

  • A description of unemployment insurance claims history, if any

F. Taxes.

  • Federal, state, local income tax returns for the last three years.

  • States sales tax returns for the last three years.

  • Any tax settlement documents for the last three years.

  • Employment tax filings for three years.

  • Any tax liens.

G. Material Contracts.

  • A schedule of all subsidiary, partnership, or joint venture relationships and obligations, with copies of all related agreements.

  • Other material contracts (major vendors, major customers)

H. Litigation.

  • A schedule of any pending litigation

  • A description of any threatened litigation.

  • Copies of insurance policies possibly providing coverage as to pending or threatened litigation.

I. Insurance Coverage.

  • A schedule and copies of the Company’s general liability, personal and real property, product liability, errors and omissions, key-man, directors and officers, worker’s compensation, and other insurance.

  • A schedule of the Company’s insurance claims history for past three years.

J. Professionals.

  • A schedule of all law firms, accounting firms, consulting firms, and similar professionals engaged by the Company during past three years.