Due Diligence Checklist for an Asset Purchase

Operational
• Leases:
o Copies of Building/Property Lease
o Copies of Equipment leases if to be assumed by Buyer
o Copies of Vehicle Leases if to be assumed by Buyer
o Copies of any other lease if to be assumed by Buyer
• Contracts obligation or commitments
o Copies of any written contractual obligations that may affect assets of
company or Name of Business
o Disclosure in writing of any verbal contractual obligations if any
• Insurance
o Copies of General Insurance policies
 Building
 Business
 Vehicles
 Other
o WCB
 Copy of clearance letter
• Employees and Subcontractors
o Written disclosure of Employee Details relative to salaries, hourly rates
and any other compensations
o Years with Co
o Experience and qualifications
o Contracts related to employees or sub contractors
• Suppliers
o List of vendors and if applicable commitments verbal or oral
o List of contracts or sub contractors and if applicable commitments verbal
or oral
o Contracts and or requirements list or communication relative to
accreditation
• Other
o Contact information of Accountant
o Contact information of Lawyer
o Environmental requirements, reports, findings and any other related
information
o Business Licensing requirements
o Copy of Current accreditations or contracts if any
o Disclosure of possible liabilities or legal actions, suits, warranties and any
other possible liability if any that may affect the assets of the company
o Disclosure of any foreseen or anticipated Capital Cost expense within the
next 12 months, 24 months, 36 months.
 o Detailed list of all equipment with manufacturer and Fair Market Value and
identification of any deferred maintenance
o Detail List of all Furniture and Fair Market Value

o Detailed list of Fixtures and Fair Market Value

o Detailed list of any Furniture Fixture and Equipment currently used in the
Shop but not included as part of the assets
o If possible, detailed List of supplies and inventory identified as current and
dead stock.
• Summary of current invoicing process
• Summary of current quoting process
• Customer Concentration report
• Supplier concentration report
• Copies of all current marketing materials
• Copies of all business forms used

Legal
• Clearance letter of assets

Financial

• Financials
o Current Trial Balance
o Current YTD Balance Sheet and Income Statement.
o Copies of Accountant prepared Income statements and balance sheets
and related notes for the last 3 years
o Details and Evidence of unrecorded revenue if applicable (Spot Check)
o Details and Evidence of Discretionary Expenses if applicable (Spot Check)
• Copies of Corporate tax returns for the past three full years
• Copies of Sales Tax returns for past three years both GST and PST
• Copies of audits is any GST, WCB, PST, CCRA
• Copies of WCB Filings for the last 12 months
• Detailed schedule of owner benefits.
• Schedule of all current clients, with billings and agreement terms, if any.