������Ƶ

A Due Diligence Checklist helps buyers and investors systematically evaluate potential business deals or investments in New Zealand. It's essentially a comprehensive roadmap that guides you through examining crucial aspects like financial records, contracts, employment agreements, and regulatory compliance before making major business decisions.

Used widely by lawyers, accountants, and business advisors across Aotearoa, these checklists typically align with the Companies Act 1993 and Fair Trading Act requirements. They help spot potential risks, verify claims, and ensure nothing important gets overlooked during transactions - especially useful for navigating complex areas like commercial property purchases, business acquisitions, or major investments.

Use a Due Diligence Checklist when planning any significant business transaction in New Zealand - especially during mergers, acquisitions, or major investments. It's particularly vital before signing binding agreements or transferring large sums of money, as it helps identify potential issues early in the negotiation process.

The checklist becomes essential when examining complex assets like commercial properties, reviewing employee contracts under the Employment Relations Act, or investigating intellectual property rights. Many NZ business advisors start their due diligence process months before target completion dates, giving enough time to address any red flags and meet regulatory requirements under the Companies Act and Financial Markets Conduct Act.

• Basic Commercial Checklist: Covers essential company records, contracts, and financial statements - ideal for straightforward business purchases
• Property Due Diligence: Focuses on land titles, zoning, building compliance, and leases under NZ property law
• Employment-focused Checklist: Examines staff contracts, Health and Safety policies, and employment records
• Regulatory Compliance: Tailored for reviewing licenses, permits, and industry-specific requirements
• Investment Due Diligence: Detailed analysis of financial performance, market position, and growth projections

• Business Buyers: Lead the due diligence process and use the checklist to guide their investigation of target companies
• Corporate Lawyers: Draft and customize checklists, review findings, and provide legal advice on identified risks
• Accountants: Examine financial records, tax compliance, and financial projections against checklist requirements
• Business Brokers: Help coordinate the due diligence process and ensure all parties meet their obligations
• Company Directors: Review and approve final due diligence reports before major transactions
• Regulatory Bodies: May reference these checklists during investigations or compliance reviews

• Transaction Scope: Define the deal type and size to determine checklist depth and focus areas
• Team Assembly: Identify key stakeholders, including lawyers, accountants, and subject matter experts
• Document Categories: List essential areas like financial records, contracts, employment agreements, and regulatory compliance
• Timeline Planning: Create realistic deadlines for document collection and review phases
• Access Rights: Arrange necessary permissions for reviewing confidential information
• Review Process: Set up a systematic approach to track findings and flag issues
• Risk Assessment: Plan how to evaluate and rate potential issues discovered during the process

• Company Information: Full legal names, registration numbers, and contact details of all parties involved
• Financial Review: Section covering accounts, tax compliance, and financial obligations under FMC Act requirements
• Legal Documentation: List of essential corporate records, contracts, and regulatory compliance certificates
• Asset Verification: Details of physical and intellectual property ownership and encumbrances
• Employment Matters: Review points for employment agreements, workplace policies, and health and safety compliance
• Regulatory Compliance: Specific items addressing industry-specific regulations and licenses
• Privacy Provisions: Confidentiality requirements and data protection measures under Privacy Act 2020

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 Structure: A checklist outlines what needs investigation, while a report presents findings and conclusions from that investigation
• Timing of Use: The checklist comes first as a planning tool, guiding the investigation process. The report follows after, documenting discoveries and analysis
• Legal Standing: The checklist serves as a procedural guide without legal binding power, whereas the report becomes a formal record that can carry legal weight in transaction disputes
• Content Focus: Checklists contain categories and questions for investigation, while reports provide detailed answers, evidence, and professional opinions