Due Diligence Part 1 – Foundation

Understanding what information we need and why it’s important for building our partnership

Start Part 1 - Foundation Assessment

Your Due Diligence Journey

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Foundation Assessment • Operations Review • Assurance Phase

What This Assessment Covers

The Foundation assessment helps us understand the fundamental health and risk profile of your business. This isn't about finding problems - it's about understanding your business foundation so we can structure the best possible partnership.

Why We Need This Information

Every successful partnership requires transparency and trust. By understanding your business foundation, we can identify opportunities, structure appropriate terms, and ensure compliance requirements are met from day one.

Section 1: Corporate Risk Assessment

Understanding your corporate governance and director background
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What are we looking for and why?

We need to understand any legal or regulatory issues that could affect the business or its leadership. This is standard practice in all business partnerships and helps us assess risk appropriately.

This covers: Any involvement in legal proceedings, professional restrictions, or insolvency matters over the past 20 years for company officers and directors.

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What information you'll provide
  • Company involvement in criminal, civil, or regulatory proceedings
  • Director/officer legal proceedings or regulatory violations
  • Current pending legal matters affecting leadership
  • Professional restrictions on directors (trade, profession, business)
  • Professional discipline actions (suspensions, removals from bodies)
  • Corporate and personal insolvency history of directors

Most businesses answer "No" to these questions. If you do need to answer "Yes" to any question, additional fields will appear for details and supporting documents.

Section 2: Financial Verification

Essential financial documents that verify your business position
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Why do we need comprehensive financial records?

Financial verification forms the backbone of any business assessment. We need to understand your financial performance, compliance, and operational health to structure an appropriate partnership.

Think of this as: Your business's financial health check that demonstrates stability and growth potential.

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Documents you'll need to upload
Audited Financial Statements
Last 2 years - complete audited accounts with auditor reports
Tax Returns
Complete tax returns for the last 2 years
BAS Statements
Quarterly Business Activity Statements for last 2 financial years
ATO Accounts
Tax accounts and integrated accounts for last 2 years plus current YTD
Management Accounts
Balance sheet, P&L, cash flow statements, and Xero files
Bank Statements
All business accounts for last 2 years and year-to-date
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Additional financial information
  • Current debtor listing with aging analysis
  • Current creditor listing with aging of liabilities
  • Capital expenditure details and budgets
  • Bad debt provisions and historical experience
  • Auditor management letters and responses

Section 3: Compliance & Legal Risk Assessment

Identifying regulatory compliance and legal matters
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What compliance matters are we reviewing?

We need to understand your regulatory environment and compliance history. This helps us identify any potential issues and ensure ongoing compliance requirements are met.

Focus areas: Regulatory breaches, compliance audits, client complaints, and regulatory correspondence.

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Information and documents required
  • Any breaches of legislation or regulations (with supporting documents if applicable)
  • Regulatory correspondence regarding law interpretation or application
  • All prior compliance audit reports
  • Client complaint correspondence and resolution documentation

Good News

Most businesses have minimal compliance issues to report. This section often requires very few document uploads.

Section 4: Insurance Coverage Assessment

Understanding your insurance protection and claims history
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Why do we need to review insurance coverage?

Insurance coverage demonstrates risk management practices and protects the business. We need to understand your coverage levels, claims history, and ensure adequate protection is in place.

This helps us: Assess risk management practices and identify any coverage gaps that might need addressing.

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What you'll need to provide
  • Claims record details for the last 5 years (types, dates, amounts, outcomes)
  • Claims history documentation and settlement records
  • Details of disclosures made to insurers (risk assessments, incident reports)
  • Confirmation that premiums are current and policies are active

Preparation Tip

Contact your insurance broker before starting - they can provide claims summaries and policy status confirmations quickly.

Ready to Begin?

Estimated time: 30-60 minutes for most businesses, depending on your specific circumstances.

Start Part 1 - Foundation Assessment

Remember: You can save progress and return later if needed.
Contact Richard Hernan or Reagan Muller if you have any questions or need assistance.