Mergers and Acquisitions For Dummies (73 page)

All contracts between the company and any officers, directors, 5 percent shareholders or any of their respective families or affiliates

License, sublicense, royalty and franchise agreements, or equipment leases

All distribution, agency, manufacturer representative, marketing, and supply relationships and obligations with copies of all related agreements

Letters of intent, contracts, and closing transcripts from any merger, acquisition, or divestiture

Options and stock purchase agreements involving interests in other companies

All non-disclosure or noncompetition agreements the company is a party to

Any agreements a change in control of the company affects in any manner

All management contracts

Any brokers or finders agreements applicable to the company

Contracts relating to other material business relationships, including, but not limited to, any current service, operation, or maintenance contracts and any current contracts for purchase of fixed assets

Insurance

Insurance — that is to say, risk management — is another important factor for any Buyer. Understanding the costs of insuring Seller's business is important, of course, but so is understanding the underlying risks associated with the business. Insurance info for due diligence may include the following:

The company's insurance policies, which may include general liability, personal and real property, product liability, errors and omissions, directors and officers, and worker's compensation.

Schedule of insurance claims

Listing of areas of self-insurance