Mastering Contract Due Diligence: Essential Guide to Identifying and Reviewing Agreement Types
Streamline your M&A due diligence process with our comprehensive guide to contract classification and review. Learn to quickly identify key agreement types including service agreements, licensing contracts, distribution deals, and employment contracts. Our expert-crafted checklists ensure you cover all critical elements for each contract category, minimizing risk and maximizing efficiency. Discover how proper contract categorization impacts deal valuation, regulatory compliance, and post-merger integration. Ideal for M&A lawyers, paralegals, and due diligence professionals across industries. Elevate your contract review strategy and make informed decisions with our tailored approach to agreement analysis.
It’s important to use a checklist for the following reasons:
Different types of contracts have different legal requirements, clauses, and provisions that need to be carefully examined. For instance, an employment contract will have different key elements compared to a lease agreement or a supply contract.
Using a tailored checklist for the specific type of contract ensures that you do not overlook any critical aspects or terms that could significantly impact the transaction or the client's interests.
Specific checklists help you organize your review process and maintain consistency within your team of reviewers. They serve as a guide, ensuring that you cover all the relevant sections, clauses, and potential areas of concern for that particular type of contract.
Certain types of contracts may be subject to specific laws, regulations, or industry standards that must be considered during the review process. A tailored checklist will help you identify and address these requirements.
Utilizing the correct checklist can also help you prioritize the review process, focusing on the most critical areas first, and allocating time and resources effectively.
Contracts can have significant financial implications, legal liabilities, and operational impacts on the target company. A thorough review using the appropriate checklist can help identify potential risks, liabilities, or areas that may require renegotiation or modification.
Additional resources
SALI (Standards Advancement for the Legal Industry)
List of standardized document types you might need to review as part of due diligence. You can find out more about SALI here. We also provide a list available here.
Review checklists
If you don’t a checklist or one that suits your document type, ask your supervisor what they want you to consider when reviewing that document. We also have lessons on how to review specific document types you can refer to.
