Main Street & Private Markets

DealStream transaction diligence

Published · Reviewed by The Diligence Standard Team · Updated

State exactly what is being sold, which entity owns it, which liabilities remain and whether management, licenses, contracts and assets transfer.

Diligence focus

  • Transaction perimeter
  • Operating company vs asset/license sale
  • Entity ownership
  • Management continuity
  • Financial verification
  • Regulated licenses
  • International/cross-border exposure
  • Seller financing / terms

First evidence requests

  • Transaction structure summary
  • Entity/org chart
  • Financial statements and tax filings
  • Asset/liability perimeter
  • Material contracts
  • License and permit register
  • Management/employee roster
  • Proposed seller financing or retained interests

Warning signals

  • Listing sells a license or shell but implies operating-company economics
  • Cash flow is stated without entity-level support
  • Management-will-stay claim has no agreement
  • Regulatory permission is treated as freely transferable
  • Cross-border legal/tax structure is not mapped