Due Diligence Checklist Template for United States

A Due Diligence Checklist helps businesses and legal teams systematically evaluate potential deals, mergers, or investments in the Philippines. It's essentially a comprehensive roadmap that guides you through examining crucial aspects like financial records, corporate documents, permits, and compliance with Philippine regulatory requirements.

The checklist typically covers key areas mandated by the Securities and Exchange Commission (SEC) and other regulatory bodies, including tax compliance, employment matters, and environmental permits. By following this structured approach, organizations can identify potential risks, verify legal compliance, and make informed decisions before finalizing any major business transaction.

Use a Due Diligence Checklist before making any significant business investment or transaction in the Philippines. This includes mergers and acquisitions, major asset purchases, joint ventures, or when buying into an existing business. It's particularly crucial when dealing with regulated industries like banking, insurance, or real estate development.

The checklist becomes essential during pre-transaction negotiations, especially when reviewing SEC compliance records, BIR tax declarations, and local business permits. Many Filipino companies also use it during annual compliance reviews, corporate restructuring, or when preparing for potential investors - helping catch issues early and maintain strong regulatory standing.

• Financial Due Diligence: Focuses on audited statements, tax compliance, and financial obligations under Philippine accounting standards.
• Legal and Regulatory: Centers on SEC filings, permits, licenses, and compliance with Philippine corporate laws.
• Operational Due Diligence: Examines business processes, contracts, employee matters, and local operating requirements.
• Technical Due Diligence: Reviews IT systems, intellectual property rights, and technical assets under Philippine IP laws.
• Environmental Compliance: Covers DENR permits, environmental certificates, and sustainability requirements.

• Corporate Legal Teams: Lead the due diligence process, customize checklists for specific transactions, and ensure compliance with Philippine laws.
• Investment Bankers: Use these checklists when conducting financial analysis and structuring deals in the local market.
• SEC Compliance Officers: Review and verify regulatory requirements, permits, and corporate documentation.
• External Auditors: Apply the checklist during financial reviews and risk assessments.
• Company Directors: Rely on completed checklists to make informed decisions about mergers, acquisitions, or major investments.

• Identify Transaction Scope: Define the specific business deal, investment type, or corporate action requiring due diligence.
• Gather Basic Documents: Collect SEC registration, business permits, tax clearances, and other essential corporate records.
• Review Regulatory Requirements: Check relevant Philippine laws and industry-specific regulations that apply to your transaction.
• Customize Categories: Adapt checklist sections based on transaction type, industry focus, and specific risks.
• Set Timeline Markers: Create clear deadlines for document collection, reviews, and completion of each checklist section.

• Corporate Information: SEC registration details, ownership structure, and historical corporate records.
• Financial Documentation: Audited statements, tax compliance records, and material financial obligations.
• Regulatory Compliance: Business permits, licenses, and industry-specific certifications required by Philippine law.
• Asset Verification: Property titles, intellectual property rights, and equipment inventory lists.
• Legal Obligations: Contracts, pending litigation, employment agreements, and regulatory commitments.
• Environmental Compliance: DENR permits, environmental clearances, and sustainability certificates.

A Due Diligence Checklist differs significantly from a Due Diligence Report in both purpose and timing. While they work together, each serves a distinct function in the transaction process.

• Purpose and Timing: The checklist guides the investigation process beforehand, while the report presents findings and conclusions afterward.
• Structure and Content: A checklist contains categories and questions to investigate, while the report provides detailed analysis, risk assessments, and recommendations.
• Legal Function: The checklist serves as a planning tool without legal binding effect, whereas the report becomes a formal document that may carry legal weight in negotiations or disputes.
• Usage Context: Checklists help teams coordinate the due diligence process, while reports inform decision-makers and become part of the transaction record.