The Ultimate Due Diligence Checklist
Never rush the due diligence process. Use this comprehensive checklist to ensure you do not miss critical physical, financial, or legal risks.
1. Financial Verification
- 3 Years of Tax Returns (Schedule C or Form 1065/1120S)
- 3 Years of detailed Profit & Loss Statements (monthly breakdown)
- Current Year-to-Date P&L and Balance Sheet
- 12 Months of Bank Statements (to verify cash deposits)
- Current utility bills (electric, water, sewer, trash)
2. Legal, Zoning & Permits
- Copy of the Certificate of Occupancy
- Local zoning map and land-use designation
- Copy of business licenses and health department permits
- Documentation of any active code violations or pending litigation
- Existing survey maps and boundary lines
3. Physical Infrastructure
- Electrical grid inspection: Verify amp counts (50-amp vs 30-amp sites) and condition of pedestals
- Water system review: Well logs, recent water quality tests, and pressure checks
- Wastewater system check: Video inspection of main sewer lines; pumping records for septic tanks
- Roads and site grading: Check for drainage issues or eroding gravel