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What is Due Diligence?

Due diligence (DD) is the comprehensive investigation a PE firm conducts before acquiring a company. Think of it as a deep audit of every aspect of the business — its finances, customers, legal standing, operations, people, technology, and environmental risks. The goal is to confirm (or challenge) the investment thesis, uncover hidden risks, and determine the right price to pay. DD typically runs 4-12 weeks and involves multiple workstreams operating in parallel. A well-organized checklist ensures nothing falls through the cracks, tracks what has been requested vs. received, and escalates red flags to the deal team.

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Command

/dd-checklist [company name]
Loads the dd-checklist skill and generates a comprehensive, sector-tailored due diligence checklist with status tracking. 
/dd-checklist Acme Industrial Services

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What It Produces

A full diligence workstream tracker covering:
  • Financial DD — quality of earnings, working capital, debt, capex, tax, audit history
  • Commercial DD — market size, competitive positioning, customer analysis, sales pipeline
  • Legal DD — corporate structure, material contracts, litigation, IP, regulatory compliance
  • Operational DD — management team, IT systems, supply chain, facilities, insurance
  • HR / People DD — org chart, compensation, benefits, key employee risk, union agreements
  • IT / Technology DD — tech stack, technical debt, cybersecurity, data privacy, scalability
  • Environmental / ESG — environmental liabilities, regulatory compliance, ESG risks
Each item tracks: workstream, priority (P0/P1/P2), status, owner, and notes. Status flows from Not Started to Requested to Received to In Review to Complete to Red Flag.
Sector-specific items are added automatically. SaaS companies get ARR quality and SOC2 items; healthcare companies get regulatory approvals and payor mix analysis.

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How to Customize

Edit the dd-checklist skill to add your firm’s standard DD items, adjust priority levels, or add custom workstreams. See the DD Checklist skill for full workstream details, the status tracking framework, and sector-specific additions.