GallanDigital™

M&A operational diligence checklist

Comprehensive operational due diligence framework for PE-backed acquisitions. 70 diligence items across 8 domains with RAG ratings and structured findings capture.

From pre-LOI screening to confirmatory diligence.
Diligence summary 70 items
Green: 48 Amber: 16 Red: 6
DomainItemsRedAmberStatus
Operations & Org Structure1013At risk
Financial Performance1022At risk
Workforce & Labor1003Acceptable
Technology & Systems912At risk
Supply Chain & Contracts1001Acceptable
70 diligence items 8 operational domains RAG rating system PDF — print and score

Diligence workflow

Work through each domain sequentially. Earlier sections surface issues that inform later ones.

1
Pre-LOI
Desktop review
Org structure, financials, workforce basics.
2
LOI signed
Data room review
Full financial, technology, and supply chain diligence.
3
Week 2–3
Site visits
Regulatory, cyber, and ESG domain validation.
4
Week 4
Red flag review
Aggregate RAG ratings. Present findings to deal team.
5
Close
Integration brief
Amber/Red items become Day 1 integration priorities.
✓ Structured diligence, not ad-hoc discovery

8 diligence domains covered

Every operational domain that surfaces deal risk — structured, scored, and documented

Operations & org structure (10)
Accountability, spans of control, key person risk, headcount mix, operational flow.
Financial performance & EBITDA (10)
Revenue quality, margin drivers, adjustments, cash conversion, capex history.
Workforce & labor (10)
Turnover, union exposure, contractor dependency, compensation structure, safety culture.
Technology & systems (9)
ERP maturity, data integrity, integration complexity, IT staffing, technical debt.
Supply chain & contracts (10)
Customer concentration, contract terms, supplier dependency, backlog quality.
Regulatory, cyber, ESG (21)
Environmental liabilities, permit status, cybersecurity posture, sustainability reporting.

Is this for you?

This checklist is designed for the operational side of PE deal diligence.

Built for

  • PE operating partners running operational diligence workstreams
  • Deal team members covering ops alongside financial diligence
  • Interim COOs scoping Day 1 integration priorities pre-close
  • Consultants supporting PE firms on operational assessments
  • Corporate development teams evaluating bolt-on targets

Not designed for

  • Financial-only diligence (this covers operations, not accounting)
  • Legal diligence (contracts reviewed operationally, not legally)
  • Software/SaaS acquisitions without physical operations
  • Venture-stage companies without established operations

What you walk away with

Pricing

One product. Two license types.

Consulting License
$899
Deploy at client engagements. White-label permitted.
  • Everything in Internal Use
  • Deploy at up to 10 client engagements
  • White-label rights
  • Editable Word source file
Best for: Consultants and advisory firms supporting PE operational diligence.
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The problem this solves

Without this checklistWith this checklist
Operational diligence is ad-hoc — different items checked on every deal70 items across 8 domains, consistent on every deal
Red flags discovered after close, when leverage is goneRed flags documented pre-close with structured RAG ratings
Consultants charge $50K–$150K for operational diligence workstreamsSelf-service framework for $249 — reusable across every deal
Integration planning starts from scratch after closeAmber items become a ready-made Day 1 priority list

Frequently asked questions

It is a structured framework that covers what a full operational diligence workstream should assess. For smaller deals or bolt-on acquisitions, it may be sufficient on its own. For platform acquisitions, it serves as the operational checklist that runs alongside financial and legal diligence.

Depends on data availability. With a well-organized data room, an experienced operator can work through all 70 items in 2–3 days. In practice, the checklist runs across the full diligence period (typically 4–6 weeks) as information becomes available.

The checklist was built on industrial PE deal experience, so sections on workforce, safety, and supply chain are industrial-weighted. However, 6 of the 8 domains apply to any PE-backed acquisition — org structure, financials, technology, contracts, regulatory, and cyber/ESG.

The PDF is a fixed framework — score it as-is. The Consulting License includes the editable Word source file for customization.

A former Big-4 consultant (KPMG, EY) and Managing Director with direct PE deal experience across industrial platform acquisitions. The diligence domains reflect real operational assessments conducted under PE sponsor oversight.

Find the operational risk before the wire clears.

70 diligence items. 8 domains. RAG-rated. Reusable on every deal.