financial-due-diligence

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Generate a financial due diligence checklist and analysis framework for any investment, acquisition, or partnership. Use when asked for a due diligence checklist, M&A financial review, investment analysis framework, or vendor financial assessment. Produces a document request list, key analytical questions, red flags checklist, and a summarised financial health assessment.

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Sourcemohitagw15856/pm-claude-skills

Added on2026-05-23

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npx skill4agent add mohitagw15856/pm-claude-skills financial-due-diligence

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Financial Due Diligence Skill

Produces a structured financial due diligence framework — document request list and analytical questions — for any investment, acquisition, or significant commercial relationship.

Required Inputs

Transaction type (acquisition / investment / partnership / supplier / fundraise)
Stage of diligence (initial screening / full DD / confirmatory)
Target company type (startup / SME / listed / subsidiary)
Key concerns (optional — e.g. revenue recognition, customer concentration)

Output Structure

1. Document Request List

Financial Statements

Audited accounts for last 3 years
Management accounts for current year (monthly)
Board-approved budget and latest reforecast
3-year financial model with assumptions

Revenue

Revenue by customer (top 20, % of total)
Revenue by product/segment
Contracted vs recurring vs one-off breakdown
Churn and renewal data

Costs

Cost of sales breakdown
Headcount by department with compensation detail
Top 10 supplier contracts

Cash and Debt

Bank statements (12 months)
Debt schedule with covenants and maturity
Working capital analysis

Tax

Last 3 years tax returns
Any open enquiries
R&D tax credit claims

2. Key Analytical Questions

Revenue quality: Is revenue growing organically? What % is truly recurring? Customer concentration risk?

Margin analysis: Gross margin trend over 3 years? One-off items inflating EBITDA? Normalised EBITDA?

Cash conversion: Does profit convert to cash? Cash conversion cycle? Working capital red flags?

Debt and liabilities: Net debt position? Contingent liabilities? Covenant headroom?

3. Red Flags Checklist

Revenue concentration over 30% in one customer
Declining gross margins without explanation
EBITDA-to-cash conversion below 70%
Auditor qualifications or emphasis of matter
Related party transactions not at arm length
Aggressive revenue recognition
Growing debtor days with no explanation

4. Summary Output Template

Revenue quality: [Assessment]
Margin sustainability: [Assessment]
Cash generation: [Assessment]
Balance sheet risk: [Assessment]
Overall: Green Strong / Amber Acceptable / Red Material concerns

Example Trigger Phrases

"Give me a financial due diligence checklist for [company type]"
"What documents should I request for financial DD?"
"Build a DD framework for our Series A investment"