Due Diligence Checklist
OfficialFreeStreamline your due diligence process with tailored checklists.
Free · Opens the source repo
What Due Diligence Checklist does
The Due Diligence Checklist skill is designed to facilitate the due diligence process by generating comprehensive checklists based on the specific characteristics of the target company and deal type. Users begin by providing essential information such as the target company’s name, sector, business model, deal type, complexity, and any key concerns. This initial scoping step ensures that the resulting checklists are relevant and focused on the most critical areas of inquiry.
Once the scope is defined, the skill generates detailed workstream checklists covering various aspects of due diligence, including financial, commercial, legal, operational, HR, IT, and environmental considerations. Each checklist is customized to the sector of the target company, ensuring that all relevant factors are addressed. For instance, software companies might include specific items related to ARR quality and compliance, while healthcare firms would focus on regulatory approvals and reimbursement risks.
The skill also includes a robust status tracking system, allowing users to monitor the progress of each checklist item. Users can assign priority levels, track the status of requests, and designate owners for each task. This feature enhances accountability and ensures that critical items are addressed promptly. Additionally, a red flag summary helps users maintain awareness of potential issues that could impact the deal, allowing for proactive management of risks.
Finally, the output includes an Excel workbook that organizes all checklists and status updates, making it easy to share with team members and stakeholders. This structured approach not only saves time but also improves the thoroughness of the due diligence process, making it an invaluable tool for M&A professionals and investment teams.
When to use it
Use this skill when initiating due diligence for mergers, acquisitions, or investments to ensure a comprehensive review process.
When not to use it
This skill may not be suitable for informal or small-scale transactions where a full due diligence process is not warranted.
What you can build with it
M&A Transaction Kickoff
Use this skill at the start of an M&A transaction to create a tailored due diligence checklist that covers all critical areas.
Data Room Organization
Employ the skill to organize and manage the review of a data room, ensuring all necessary documents are accounted for.
Ongoing Status Updates
Utilize the status tracking feature to provide regular updates to stakeholders on the progress of due diligence tasks.
How to install Due Diligence Checklist
View source1. Install with the skills CLI
npx skills add anthropics/financial-services/dd-checklist --agent claude-code2. Or install it manually
Download the skill folder and drop it into ~/.claude/skills/ for all projects, or .claude/skills/ to scope it to one repo. Restart Claude Code so it picks up the new skill.
Anthropic's agentic coding CLI, and the reference implementation of Agent Skills. Drop a skill folder into ~/.claude/skills and Claude Code loads it automatically whenever a task matches the skill's description. Claude Code docs
Inside SKILL.md
Written by anthropicsDue Diligence Checklist
Workflow
Step 1: Scope the Diligence
Ask the user for:
- Target company: Name, sector, business model
- Deal type: Platform acquisition, add-on, growth equity, recap, carve-out
- Deal size / complexity: Determines depth of diligence
- Key concerns: Any known issues to prioritize (customer concentration, regulatory, environmental, etc.)
- Timeline: When is LOI / close targeted?
Step 2: Generate Workstream Checklists
Generate a checklist across all major workstreams, tailored to the sector:
Financial Due Diligence
- Quality of earnings (QoE) — revenue and EBITDA adjustments
- Working capital analysis — normalized vs. actual
- Debt and debt-like items
- Capital expenditure (maintenance vs. growth)
- Tax structure and exposure
- Audit history and accounting policies
- Pro forma adjustments (run-rate, synergies)
Commercial Due Diligence
- Market size and growth (TAM/SAM/SOM)
- Competitive positioning and market share
- Customer analysis — concentration, retention, NPS
- Pricing power and contract structure
- Sales pipeline and backlog
- Go-to-market effectiveness
Legal Due Diligence
- Corporate structure and org chart
- Material contracts (customer, supplier, partnership)
- Litigation history and pending claims
- IP portfolio and protection
- Regulatory compliance
- Employment agreements and non-competes
Operational Due Diligence
- Management team assessment
- Organizational structure and key person risk
- IT systems and infrastructure
- Supply chain and vendor dependencies
- Facilities and real estate
- Insurance coverage
HR / People Due Diligence
- Org chart and headcount trends
- Compensation benchmarking
- Benefits and pension obligations
- Key employee retention risk
- Culture assessment
- Union/labor agreements
IT / Technology Due Diligence (for tech-enabled businesses)
- Technology stack and architecture
- Technical debt assessment
- Cybersecurity posture
- Data privacy compliance (GDPR, CCPA, SOC2)
- Product roadmap and R&D spend
- Scalability assessment
Environmental / ESG (where applicable)
- Environmental liabilities
- Regulatory compliance history
- ESG risks and opportunities
Step 3: Status Tracking
For each item, track:
| Item | Workstream | Priority | Status | Owner | Notes |
|---|---|---|---|---|---|
| QoE report | Financial | P0 | Pending | ||
| Customer interviews | Commercial | P0 | In Progress | 3 of 10 complete |
Status options: Not Started → Requested → Received → In Review → Complete → Red Flag
Step 4: Red Flag Summary
Maintain a running list of red flags discovered during diligence:
- What was found
- Which workstream
- Severity (deal-breaker / significant / manageable)
- Mitigant or path to resolution
- Impact on valuation or deal terms
Step 5: Output
- Excel workbook with tabs per workstream (default)
- Summary dashboard: % complete by workstream, outstanding items, red flags
- Weekly status update format for deal team
Sector-Specific Additions
Automatically add relevant items based on sector:
- Software/SaaS: ARR quality, cohort analysis, hosting costs, SOC2
- Healthcare: Regulatory approvals, reimbursement risk, payor mix
- Industrial: Equipment condition, environmental remediation, safety record
- Financial services: Regulatory capital, compliance history, credit quality
- Consumer: Brand health, channel mix, seasonality, inventory management
Important Notes
- Prioritize P0 items that are gating to LOI or close
- Flag items where the seller is slow to respond — may indicate issues
- Cross-reference data room contents against the checklist to identify gaps
- Update the checklist as diligence progresses — it's a living document
Frequently asked questions about Due Diligence Checklist
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