Due Diligence Administrative and Operational Checklist
1.0 General Corporate: 1.1 1.2 1.3 1.4 1.5 1.6 Ownership: Corporate Entity, Structure and Shareholders and Option-holders History Company Vision Corporate Culture: Key Values Strategy: Markets, Products, Service Organizational Structure/Management Team
2.0 Products and Services: Products: Internally developed software, hardware, tools Resale: Hardware and Software Consulting: Strategy, business process, custom software, package implementation, integration Support: Maintenance, network administration, outsourced services, help desk, post implementation support 2.5 Training: User, technical, administrator, train the trainer, at client site or at company facilities 2.6 Staff Augmentation: Types of staffing provided 2.7 Other 3.0 Infrastructure: 3.1 Facilities 3.1.1 3.1.2 3.1.3 2.1 2.2 2.3 2.4
Length of lease, space Scaleability: Rights of first refusal Remote office locations
3.1 Network Infrastructure 3.1.1 Equipment type and condition 3.1.2 Software 3.1.3 Capabilities and Scaleability: Number of users that can be supported internally and remotely 3.1.4 Operations and Maintenance: Dedicated internal resource, other consultants, or outsourced 3.1.5 Internet Services: Provide own hosting, other services 3.1.6 Client/Partner Connectivity: VPNs, internet, other networks 3.1.7 Other voice and data connections 3.2 Phone Systems 3.3 Notebooks and workstations: Inventory listing, software, purchase and maintenance program, help-desk support 3.4 Other fixed asset listing
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4.0 Human Resources: 4.1 Staff 4.1.1 4.1.2 4.1.3 4.1.4 4.1.5 4.1.6 4.1.7 4.1.8 4.1.9 Resumes: certifications, employment date, education and training, competencies – technical, project and managerial, administrative Compensation: Salaries, bonuses and other Billing rates Project experience: client verticals, specific involvement Ranking and succession planning Current roles and responsibilities Benefits: Medical, dental, disability, 401K, educational reimbursements Vacation and Sick Leave policies Key Person Insurance
4.2 Policies and procedures 4.2.1 Travel 4.2.2 Expense reporting 4.2.3 Reviews and appraisals 4.2.4 Moving and transfer reimbursements 4.2.5 Hiring and Firing/disciplinary action 4.3 Compensation structure 4.3.1 Guidelines: Ranges for new employees, brackets/levels 4.3.2 Other compensation: Bonuses, stock options 4.4 Employment contracts: type and duration and other obligations 4.5 Recruiting 4.5.1 Methods: internal, external, agencies, job fairs, internet 4.5.2 Referral programs, internal and external 4.5.3 Offer/acceptance ratio 4.5.4 Churn: voluntary and involuntary 4.5.5 Retention programs 4.6 Public Relations: internal programs and outside agency involvement 5.0 Corporate Competencies/Knowledge 5.1 Delivery models 5.2 Key methodologies, practices 5.3 Corporate library/repository 5.4 Seminars and workshops 5.5 Training competencies 5.6 Client post implementation support 5.7 Quality assurance programs 5.8 Collaborative systems deployed 5.9 Knowledge networks 5.10 Scheduled Mgt/staff planning meetings
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6.0 Client Engagements 6.1 6.2 6.3 6.4 6.5 6.6 6.7 Client list: (size, location, industry) Primary contact and title Services provided Backlog and anticipated business (repeatability) Terminated engagements Revenues per engagement (software, hardware, services) Service mix
7.0 Engagement Model (for each type of service) 7.1 7.2 7.3 7.4 7.5 7.6 Type of engagement (i.e. project management vs staff augmentation) Pricing methodology: Time and material vs fixed pricing Targeted Revenues per engagement: Billing rate mix Length of engagements Staffing (number of consultants on project, employees vs subcontractors, travel involved) Project management, coordination and scheduling
8.0 Actual Engagements (during the past two years) 8.1 Nature of the project/services rendered 8.2 Type of engagement 8.3 Pricing methodology (i.e. revenues per engagement, billing rates) 8.4 Fixed rate, time and material, shared risk 8.5 Location of engagement 8.6 Length of engagements 8.7 Project delivery 8.8 Project team composition 8.9 Client satisfaction 8.10 On going engagements / those in RFP stage 9.0 Marketing and Sales 9.1 9.2 9.3 9.4 9.5 9.6 9.7 9.8 Marketing Target market (company size and industries) Media activity (PR, Web Site, etc) Agencies Co-op advertising, trade shows, other promotions Lead generation methodology (including strategic alliances, referral programs) Branding/Brand awareness Collateral Material (brochures, white papers, letters, etc)
9.9 Sales 9.9.1 9.9.2 9.9.3 9.9.4 9.9.5
Budgeting and forecasting process Pipeline (opportunity) management – including reporting procedures Tools used (SFA) RFP process and sign-off Sales model (including leads, appt setting, presentation, follow up, proposals, contracts)
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9.10 Direct Sales Force 9.10.1 Budgeted and actual $ per rep 9.10.2 Deployment: existing clients, greenfield, jointly with partners 9.10.3 Direct vs indirect 9.10.4 Composition: size, geography and experience 10.0 Client Development 10.1 Client Satisfaction Program: frequency of contact, purpose of contact, tracking etc 10.2 Key Contact Loyalty Programs: how do you develop/maintain strong relationships? (Provide value add? Wine-n-dine?) 10.3 Expanding (extending) existing clients (follow up frequency? Additional offerings?) 11.0 Competition 11.1 Firms that bid against company 11.2 Advantages and disadvantages 11.3 Pricing 11.4 Vertical focus 11.5 Geography 12.0 Partnerships/Alliances 12.1 Characteristics of Partnerships/Alliances 12.1.1 Reseller 12.1.2 Integrator 12.1.3 Co-developer 12.1.4 Other 12.1.5 Length of relationship 12.1.6 Referral history 12.1.7 Revenues and profits 12.1.8 # implements (svc vs. product) 12.1.9 Number of trained consultants and experience level 12.2 Partnership responsibilities 12.2.1 Certification training (cost?, where? #days? levels?) 12.2.2 Minimum sales/personnel commitment 12.2.3 $ for co-marketing and promotion 12.2.4 Geographic coverage 12.2.5 Competency levels 12.2.6 Lead generation/sharing
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