1---2name: due-diligence-summary3description: Produces structured U.S. transactional due diligence summaries with risk ratings, document citations, and follow-up actions. Triggers when the user requests a due diligence summary, diligence report, red-flag memo, or data room analysis for M&A, investment, or partnership transactions.4tags:5 - analysis6 - corporate7 - summarization8 - transactional9---1011# Due Diligence Summary1213Decision-ready diligence summary with risk ratings, evidence citations, and next-step actions for U.S. transactional matters.1415## Quick Start1617Gather before beginning:18191. **Transaction snapshot** — type, parties, structure, timeline, target entities202. **Scope definition** — in/out-of-scope categories, materiality threshold, jurisdictions213. **Data room index** — document list with stable IDs and dates224. **Substantive materials** — governance docs, financials, contracts, IP schedules, litigation files, HR/benefits, real estate, tax, environmental records235. **Privilege/confidentiality designation** and allowed audience2425## Workflow26271. **Map scope to inventory** — mark each category Complete / Partial / Missing using the coverage checklist.282. **Extract findings** — facts, obligations, restrictions, change-of-control and consent triggers.293. **Classify** each finding as Fact, Representation, or Open Issue.304. **Rate risk and materiality** — quantify exposure where possible.315. **Flag conflicts** across sources; resolve by authority and date.326. **Produce summary** using the deliverable template; cite every material finding as `[Doc ID or Title, date, page/section]`.3334### Risk Scale3536| Rating | Meaning | Action |37|--------|---------|--------|38| High | Likely deal impact or material exposure | Escalate; require resolution/mitigation |39| Medium | Manageable; needs diligence or contractual protection | Track; address in docs/price |40| Low | Informational or minor exposure | Note; monitor if cumulative |4142### Coverage Checklist4344| Category | Expected Core Docs |45|----------|--------------------|46| Corporate/Governance | Charter, bylaws, consents, cap table, subsidiary org |47| Financials/Debt | Audited/unaudited FS, debt docs, guarantees, liens |48| Contracts | Top customer/vendor, assignment/consent, exclusivity |49| IP/Tech | IP schedule, licenses, OSS use, assignments |50| Litigation/Reg | Docket list, claims history, agency letters |51| HR/Benefits | Payroll, key employee agreements, benefits plans |52| Real Estate/Assets | Leases, deeds, asset schedules |53| Tax | Returns, audits, NOLs, nexus |54| Environmental | Phase I/II, permits, compliance |5556## Deliverable Template5758### Executive Summary59- Deal snapshot (type, parties, target, valuation if known)60- Top 5 red flags with risk rating and cited evidence61- Missing critical items6263### Scope & Coverage64- In-scope categories and jurisdictions65- Coverage checklist with gaps and rationale6667### Key Findings by Category6869One table per category (Corporate/Governance, Financials/Debt, Contracts, IP/Tech, Litigation/Regulatory, HR/Benefits, Real Estate/Assets, Tax, Environmental):7071| Issue | Evidence | Risk | Materiality | Follow-up |72|-------|----------|------|-------------|-----------|7374### Conflicts & Discrepancies7576| Topic | Conflicting Sources | Assessment | Action |77|-------|---------------------|------------|--------|7879### Open Items / Follow-Up Requests8081| Item | Rationale | Requested From | Priority |82|------|-----------|----------------|----------|8384### Recommended Actions85- Contractual protections (rep, warranty, indemnity, covenants)86- Price or structure adjustments87- Pre-closing conditions or consents8889## Pitfalls & Checks9091- Separate confirmed facts from representations and open issues — never conflate.92- Flag missing expected documents as findings with risk and impact.93- Use exact dates, parties, dollar amounts, and governing law when available.94- Label unsigned drafts as non-authoritative.95- For regulated industries, add a compliance subsection (HIPAA, FDA, FINRA/SEC, OFAC, FCPA, state licensing); mark statutes `[VERIFY]` if uncertain.96- Stay neutral and evidence-driven — do not advocate for or against the deal.97- Preserve privilege and confidentiality; limit distribution as instructed.
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