Free Red Flag Report Due Diligence Template
Red Flag Report Due Diligence
Company Name: [YOUR COMPANY NAME]
Report Date: November 20, 2060
Prepared By: [YOUR NAME]
Overview:
This report outlines any identified red flags related to the due diligence process for [YOUR COMPANY NAME]. It assesses potential risks that may affect business decisions regarding a potential acquisition.
Key Areas of Concern:
-
Legal Issues: Pending lawsuits, regulatory violations
-
Financial Risks: Irregular financial statements, unsubstantiated claims
-
Reputation: Negative media coverage, unresolved complaints
-
Operational Risks: Lack of clear business practices, supply chain issues
Action Required:
-
Review all flagged issues with legal and financial teams.
-
Assess impact on the overall business strategy.
-
Make recommendations for mitigation.
Conclusion:
Based on the above analysis, further action is advised to address identified red flags before proceeding with the acquisition agreement.
TABLE OF RED FLAG FINDINGS
|
Category |
Description of Concern |
Impact |
Recommendation |
|---|---|---|---|
|
Legal Issues |
Pending litigation over patent infringement in California. |
High |
Conduct further legal review before proceeding. |
|
Financial Risks |
Unexplained discrepancies in quarterly financial reports from Q2 2060. |
Medium |
Request a full audit from an independent firm. |
|
Reputation |
Negative press regarding labor disputes with suppliers. |
Low |
Monitor situation, consider PR strategy if needed. |
|
Operational Risks |
Supply chain delays due to dependency on a single vendor. |
High |
Diversify supply chain and evaluate vendor reliability. |
