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.4---56# Due Diligence Summary78Decision-ready diligence summary with risk ratings, evidence citations, and next-step actions for U.S. transactional matters.910## Quick Start1112Gather before beginning:13141. **Transaction snapshot** — type, parties, structure, timeline, target entities152. **Scope definition** — in/out-of-scope categories, materiality threshold, jurisdictions163. **Data room index** — document list with stable IDs and dates174. **Substantive materials** — governance docs, financials, contracts, IP schedules, litigation files, HR/benefits, real estate, tax, environmental records185. **Privilege/confidentiality designation** and allowed audience1920## Workflow21221. **Map scope to inventory** — mark each category Complete / Partial / Missing using the coverage checklist.232. **Extract findings** — facts, obligations, restrictions, change-of-control and consent triggers.243. **Classify** each finding as Fact, Representation, or Open Issue.254. **Rate risk and materiality** — quantify exposure where possible.265. **Flag conflicts** across sources; resolve by authority and date.276. **Produce summary** using the deliverable template; cite every material finding as `[Doc ID or Title, date, page/section]`.2829### Risk Scale3031| Rating | Meaning | Action |32|--------|---------|--------|33| High | Likely deal impact or material exposure | Escalate; require resolution/mitigation |34| Medium | Manageable; needs diligence or contractual protection | Track; address in docs/price |35| Low | Informational or minor exposure | Note; monitor if cumulative |3637### Coverage Checklist3839| Category | Expected Core Docs |40|----------|--------------------|41| Corporate/Governance | Charter, bylaws, consents, cap table, subsidiary org |42| Financials/Debt | Audited/unaudited FS, debt docs, guarantees, liens |43| Contracts | Top customer/vendor, assignment/consent, exclusivity |44| IP/Tech | IP schedule, licenses, OSS use, assignments |45| Litigation/Reg | Docket list, claims history, agency letters |46| HR/Benefits | Payroll, key employee agreements, benefits plans |47| Real Estate/Assets | Leases, deeds, asset schedules |48| Tax | Returns, audits, NOLs, nexus |49| Environmental | Phase I/II, permits, compliance |5051## Deliverable Template5253### Executive Summary54- Deal snapshot (type, parties, target, valuation if known)55- Top 5 red flags with risk rating and cited evidence56- Missing critical items5758### Scope & Coverage59- In-scope categories and jurisdictions60- Coverage checklist with gaps and rationale6162### Key Findings by Category6364One table per category (Corporate/Governance, Financials/Debt, Contracts, IP/Tech, Litigation/Regulatory, HR/Benefits, Real Estate/Assets, Tax, Environmental):6566| Issue | Evidence | Risk | Materiality | Follow-up |67|-------|----------|------|-------------|-----------|6869### Conflicts & Discrepancies7071| Topic | Conflicting Sources | Assessment | Action |72|-------|---------------------|------------|--------|7374### Open Items / Follow-Up Requests7576| Item | Rationale | Requested From | Priority |77|------|-----------|----------------|----------|7879### Recommended Actions80- Contractual protections (rep, warranty, indemnity, covenants)81- Price or structure adjustments82- Pre-closing conditions or consents8384## Pitfalls & Checks8586- Separate confirmed facts from representations and open issues — never conflate.87- Flag missing expected documents as findings with risk and impact.88- Use exact dates, parties, dollar amounts, and governing law when available.89- Label unsigned drafts as non-authoritative.90- For regulated industries, add a compliance subsection (HIPAA, FDA, FINRA/SEC, OFAC, FCPA, state licensing); mark statutes `[VERIFY]` if uncertain.91- Stay neutral and evidence-driven — do not advocate for or against the deal.92- Preserve privilege and confidentiality; limit distribution as instructed.
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