What is included in a business due diligence report?

Corporate standing and ownership

The foundation: legal name, registration number, incorporation date, current status, registered office and share capital, together with the ownership structure traced through to ultimate beneficial owners. Where a holding company sits offshore, that chain should be followed rather than stopped at the first corporate shareholder.

Directors and key people

Identity verification of directors and controlling shareholders, their other directorships, and whether any are disqualified, bankrupt or connected to failed entities. A director with a trail of dissolved companies in the same sector is a material finding.

Financial position

Filed or audited accounts covering several years where available, with commentary on revenue trend, profitability, liabilities and whether the balance sheet supports the transaction being contemplated. Where accounts are unavailable or unaudited, the report should say so plainly rather than presenting an incomplete picture as a complete one.

Legal, regulatory and compliance checks

This section covers:

• Litigation searches and any judgments outstanding
• Insolvency and winding-up proceedings
• Tax compliance standing
• Sector licences verified with the issuing regulator
• Sanctions, politically exposed person and adverse media screening

Operational and site verification

A physical inspection confirming the premises exist, are occupied by the company, and house operations at the scale claimed. Photographs, an assessment of equipment and capacity, and staffing observations turn an abstract file into evidence about whether they can actually deliver.

The part that makes it a report

A risk assessment in plain language, identifying what was verified, what could not be verified and why, the specific risks identified, and a clear recommendation. If a report does not distinguish between "we checked this and it is fine" and "we could not check this", it is not giving you what you paid for.