A Due Diligence Report is an objective view of a company’s activities, surroundings, and competitors. It is also the reason for the investors to give greater weight to the business plans of the companies they are investing in. Before you submit your due diligence report, you need to make sure that you have researched a particular company’s history and not only that.
In a Due Diligence report, it should be mentioned who directed you to a particular source for further information. If the sources were unknown, then it is not worth wasting time in looking for them. The document is not worth its time to research the sources.
When the due diligence process is complete, it is important to acknowledge that the company was taken under consideration by the investors. This can be done by following the protocol of due diligence. It includes a letter of acknowledgment from the investors acknowledging the fact that the due diligence was conducted.
Apart from the due diligence report example, you need to submit three letters to the company concerned. These letters should include the acknowledgment from the investors and should also indicate that the due diligence report was not done on a random basis. There are instances when the due diligence report is done on a random basis. Investors would end up losing their money because of this.
Investors will also require some disclosure of the due diligence report. Some investors do not want a complete report, but only a summary of the report. The summary is generally provided by the media and the management, but some investors would want to see the full report.
In case the report has not been done after a certain time, then the report will need to be re-done. An investor might want to know why the due diligence was not done, but he should also look at the other reasons for this delay. It is the responsibility of the company to ensure that the due diligence is done on time so that the investor does not lose his investment.
Investors also have the right to withdraw the due diligence report. This is usually a fairly easy process, as it usually only requires the exchange of a document. Investors should also be assured that this is not possible if the due diligence report shows a breach of due diligence policy.
As mentioned earlier, due diligence can be complex. Before you submit your due diligence report you should consult with a professional consultant. He or she can provide you with all the necessary information to be able to write a due diligence report.