Checklists: Are they all they are supposed to be?
As financial investigators we are somewhat baffled by the proliferation of due diligence check lists. These are supposed to be 100% comprehensive lists of must-do items for every industry. Don’t believe it and don’t pay for it! These books cost up to several hundreds of dollars each. Although they have some good features, they lack a central ingredient: A due diligence professional to execute the check lists and to know the difference between what should be covered and what should be ignored. It is no different than patients seeing a doctor and the doctor giving the patients a check list on how to operate on themselves: The patients do not have the skills and will not understand the significance of the steps.
No business is exactly like another, even in the same industry. No business environment is stagnant long enough to be able to know all there is to know to compile a due diligence check list. Regulations and tax law are constantly changing and cannot be predicted by a check list that, even when newly published, was probably finalized from 6 and 12 months prior to publishing. When you want or need due diligence service contact a due diligence professional who can help ask and answer the questions that are key to your decision making process.