SME Due Diligence Checklist

Table of Contents

In the world of business acquisitions, due diligence is a crucial process. Our SME Due Diligence Checklist template streamlines this task, helping you to conduct a thorough investigation of a prospective small or medium-sized enterprise.

What is Due Diligence?

Due diligence is an essential process utilized by individuals, companies and investment firms to evaluate a potential merger, acquisition, or investment.  Business buyers will conduct due diligence on a target company to confirm the accuracy of the seller’s claims, mitigate risk, and garnet deeper insight into the operations – prior to committing to the deal.  While the due diligence process can be extensive and time consuming, it can help prevent costly surprises later on.

What is an SME Due Diligence Checklist?

A Due Diligence Checklist is a comprehensive list of documents and information needed to conduct a thorough investigation of a prospective acquisition. For SMEs, this list may include items related to financial records, legal documents, business contracts, human resources, and more.

SME versus SMB: What’s the Difference?

An SMB is a small-to-medium-sized business, while an SME is a small-to-medium-sized enterprise. Depending on whom you ask, there are several definitions and key differentiators that influence the classification. A widely accepted definition of SMB and SME is based on the number of employees and annual revenues – and even those classification ranges can vary. 

At DueDilio, we consider any business with annual revenues of $1-$10 million to be an SMB.  Any business with revenues larger than $10 million we classify as an SME.

When conducting due diligence, an SME will typically have a more complex process.  Our SME Due Diligence Checklist is specifically tailored to address those areas.

Looking for our SMB Due Diligence Checklist?

The Role of an SME Due Diligence Checklist in Business Acquisitions

In the process of a business acquisition, an SME Due Diligence Checklist serves as a roadmap for your investigation. It helps you ensure that you’re conducting a thorough review of all aspects of the business, from financial health to legal standing.

Our SME Due Diligence Checklist template includes a comprehensive list of areas you need to review when considering the acquisition of an SME, providing a structured format that helps you organize and analyze the necessary information.

Why Use Our SME Due Diligence Checklist Template?

Crafting a due diligence checklist from scratch can be daunting. Our template provides a detailed guide tailored to the unique requirements of assessing an SME, ensuring you leave no stone unturned.

Frequently Asked Questions (FAQs)

What is the purpose of an SME Due Diligence Checklist?

An SME Due Diligence Checklist is a vital tool in business acquisitions, offering a structured approach to investigating a prospective small or medium-sized enterprise. The checklist provides a comprehensive list of necessary documents and information to help you assess the business’s viability and potential risks.

How can your SME Due Diligence Checklist template aid in my acquisition process?

Our SME Due Diligence Checklist template simplifies the due diligence process by providing a detailed guide to follow. It ensures a thorough review of all relevant business aspects, from financial health to legal matters, helping you make a more informed decision about the acquisition.

Is your SME Due Diligence Checklist template adaptable?

Absolutely. While our SME Due Diligence Checklist template provides a comprehensive starting point, we understand that every transaction is unique. You are encouraged to modify the checklist to cater to your specific needs and circumstances.

Download Our SME Due Diligence Checklist Template for Business Acquisitions

Kickstart your due diligence process with confidence. Download our SME Due Diligence Checklist template today. It’s designed to streamline your due diligence process and facilitate more informed acquisition decisions.

Please share your name and e-mail address below to receive a free copy of the SME Due Diligence Checklist.  Once you submit the form, you will receive a free download link to the PDF and Excel versions of the checklist.

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Important Disclaimer:
The information provided in this document is for general informational purposes only and does not constitute legal or financial advice. DueDilio does not make any warranties or representations for the completeness, reliability and accuracy of the information provided herein and does not assume any responsibility for errors or omissions in the content thereof. For the avoidance of doubt, any person’s use of or reliance on the contents of this document is strictly at their own risk, and DueDilio shall in no event be liable in any way whatsoever for such use or reliance. Users of this document should contact their attorney to obtain relevant legal advice in this regard.

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Picture of Written by Roman Beylin

Written by Roman Beylin

Roman Beylin is the founder of DueDilio, a leading online marketplace to assemble an M&A deal team. Our large and growing network of highly vetted independent professionals and boutique firms specialize in M&A advisory, due diligence, and post-acquisition value creation.

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