If you don’t need full-scope due diligence for time or efficiency reasons, we have two choices for you: red-flag or selective-focus due diligence.

Do you wish to rule out the possibility that potential deal breakers exist in a proposed transaction ahead of time? 

This guarantee is provided through “red flag” due diligence.

With Red Flag in Due Diligence, you get an easy-to-use tool that helps you accurately identify and address any potential issues in the due diligence process. 

Quickly discover all the warning signs before they become problems with “red flags” in due diligence so you can make smarter decisions and protect your investments.

Following is a sample of deal breakers or findings that can have a significant impact on lowering the acquisition price at this early stage of the transaction:

1. Abnormally high debt-to-equity ratio
2. Suspicious changes in accounting policies
3. Low return on assets
4. High inventory turnover rate of
5. Low gross profit margin
6. High operating expenses
7. Significant uncollectible accounts receivable
8. Unexpected changes in liquidity
9. Unusual patterns of revenue recognition
10. Significant related party transactions

Are you ready to take your due diligence process to the next level?

Do you want to know the essential red flags of due diligence and how to detect them quickly? 

With the above list of red flags, you can stay ahead of the game and avoid costly mistakes. 

Our easy-to-read list covers all key topics, from financial risks to legal risks. 

We also provide practical tips and best practices for investigating each red flag faster and more accurately.

Make sure you’re always one step ahead of potential problems.

With the above list of red flags, you’ll be armed with the knowledge and skills needed to properly evaluate all potential risks before entering into a transaction.

Start learning more about due diligence today. 

Want to learn more about M&A? Click the link below!