Due diligence exists to price risk correctly and to identify what must be fixed before completion. This is what it should cover, organised by category.
Corporate records
- Constitutional documents and any amendments
- Register of members and directors, and history of share transfers
- Board and shareholder resolutions for major decisions
- SECP filing history and current compliance status
Contracts and obligations
- Material contracts, including any change-of-control provisions triggered by the transaction
- Outstanding loans, guarantees and security interests
- Employment contracts and any change-of-control entitlements
- Leases and property rights
Litigation and compliance
- Pending or threatened litigation and regulatory proceedings
- Tax compliance history and any outstanding assessments or disputes
- Intellectual property ownership and registration status
- Regulatory licences and their transferability
What to do next
Request the target’s corporate, financial and legal records against this list before finalising the transaction structure, since gaps found late are far more expensive to address than gaps found early.