Due Diligence Checklist (Free)

Due diligence is where deals are made or broken. The businesses that close fastest and at the best prices are the ones that come prepared. Here's what buyers will ask for — get it ready before you go to market.

Financial Documents

• •Trailing 12-month Profit & Loss statement (monthly breakdown)
• •Year-over-year P&L comparison (2-3 years)
• •Balance sheet
• •Bank statements (12 months minimum)
• •Tax returns (2 years)
• •Add-back / SDE schedule with documentation
• •Accounts receivable and payable summary

Traffic & Analytics

• •Google Analytics access (or equivalent)
• •12-month traffic data with source breakdown
• •Conversion rate data
• •Email list size and engagement metrics
• •Social media following and engagement
• •SEO metrics (Domain Authority, ranking keywords)

Operations

• •Standard Operating Procedures (SOPs) documentation
• •Team structure and roles
• •Contractor/employee agreements
• •Vendor and supplier contracts
• •Technology stack documentation
• •Customer service process and metrics

Legal & Compliance

• •Business entity documentation
• •Domain ownership verification
• •Trademark and IP documentation
• •Terms of service and privacy policy
• •Any pending or past legal issues
• •Platform compliance history

Customer Data

• •Customer concentration analysis
• •Churn rate (for subscription businesses)
• •Customer acquisition cost (CAC)
• •Lifetime value (LTV)
• •Refund/return rate

Asset Inventory

• •Complete domain list
• •All account logins and access credentials
• •Software licenses and subscriptions
• •Content library and media assets
• •Supplier and vendor contact list

Pro Tips

1. •Start early — Begin preparing documents 3-6 months before going to market
2. •Be organized — Use a virtual data room with clear folder structure
3. •Be transparent — Disclose known issues upfront rather than having buyers discover them
4. •Update regularly — Keep your data room current with the latest monthly numbers

The better prepared you are, the faster you'll close and the more confident your buyer will be in the purchase price.