Sales and Marketing Information Needed for M&A Due Diligence
The Buyer in an M&A deal needs access to information about all aspects of the company’s business. Access to this information allows the Buyer to do her due diligence. The Seller should be prepared to provide access to that information immediately after the letter of intent (LOI) is signed.
This comprehensive list of the sales and marketing documents that could apply to your deal will come in handy. Since every deal is different, not all of them will apply to every deal.
Complete customer list, including name, address, telephone number, and contact name.
Listing of major customers (by major product line, if applicable) and percentage of sales to each for each year-end of the reporting period and the most YTD. (A major product line means any product or service of the company contributing 5 percent or more of the revenues of the company. A major customer means the top 50 customers [by sales volume] of the company.)
Schedule of open orders.
Copies of all supply or service agreements.
Description or copy of the company’s credit policy.
Listing and explanation for any major customers lost, or who have notified the company (orally or in writing) of a proposed adverse change or modification to the relationship during the reporting period.
Copies of all surveys and market research reports relevant to the company or its products or services.
Schedule of the company’s current advertising programs, market plans and budgets, and printed marketing materials.
Schedule and description of the company’s major competitors.