Some of the most important due diligence is done on the industry, and this can include competitor analysis, pricing trends, volume analysis, and speaking with industry experts. Due diligence will also be done on the company’s growth and cost strategy, customers, customer contracts, products, distribution chain, risks, etc.
There are many other common due diligence items that are more “check-the-box” and perfunctory in nature, which are often 100% outsourced to third parties. These include: auditing financial statements, quality of earnings (EBITDA adjustments), IT, lender due diligence, facility due diligence, site visit, environmental due diligence, market sizing, compensation of management, ownership, legal, tax, and insurance.