M&A Legal Due Diligence Framework Prompt
Prompt
Our client is acquiring [PASTE: target company type]] and we need to plan comprehensive legal due diligence to uncover risks and shape transaction structure. Build a detailed due diligence framework. Include: (1) Legal review areas – corporate governance, material contracts, intellectual property, employment matters, litigation, regulatory status, tax positions, environmental. (2) Information requests – detailed document requests organized by category. What's truly critical vs. nice-to-have? (3) Critical path analysis – which legal findings are deal-breakers? Which are acceptable with indemnification? (4) Timeline & phasing – preliminary DD in 3 weeks, full DD in 6 weeks? Parallel work streams? (5) Diligence report structure – how will you organize findings? Executive summary, detailed issues, risk rankings? (6) Rep & warranty insurance – what coverage gaps should you recommend they insure? Include a sample DD information request list, findings report template, and risk prioritization matrix. Provide guidance on managing data rooms and interviews.
Why it works
Thorough DD prevents costly post-acquisition surprises. Buyers value a structured, comprehensive approach.
Watch out for
DD scope creep can delay closing. Agree upfront on prioritized vs. secondary diligence items.
Used by
Executives