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How to write a due diligence report

Updated March 22, 2017

Due diligence reports are presented to Chief Executive Officers (CEOs) or Chief Financial Officers (CFOs). Due diligence reports are also referred to as IT (Internal Technical) assessment reports. Before you write a due diligence report, you must conduct extensive research on all the major components of the business or organisation. Once you have organised this data and evaluated it, your report must go over the major parts of the organisation, and which ones are currently profitable and which ones are not. You should also give ideas for how to improve these components in your report.

Start the report with an "Objectives" section, which states the main purpose of the report. This should also specify which components of the organisation you are covering, for example, infrastructure, technology expenses or business applications.

Create another section that has an executive summary of the findings of the report. This should briefly go over the findings of the report and the overall conclusion from your data.

List the key findings in your data for each component that you covered in your report. After listing your findings for each component, create a "Recommendations" section where you elaborate on how to improve these components of the company.

Conclude the report with a financial analysis explaining the feasibility of your recommendations and the impact they would have on the company. Propose a transition plan where the company would gradually implement these changes over a 12-month period per the report's recommendations.

Tip

Keep the report as short and concise as possible. The longer the report, the more tiresome it will be for the CEO or CFO to read.

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About the Author

James Wiley graduated from Providence College in 2009 as a double major in global studies and Spanish. Wiley's capstone thesis paper was published in the Providence College database. He has also competed in international script-writing competitions and coauthored a pilot which placed in the top 15 percent of international entries over the past year.