There are four main sections for a Due Diligence process.
1. Product & Technical DD
Main question: Does the product work the way it should?
Skills required: Technical skill you already have acquired. Technical may include: inspecting the machine, product review, code review.
If you don’t have the technical skill, bring in an expert in the field.
2. Commercial DD
Main question: Can the product sell in this market?
Skills required: Market research skill.
If you have the budget, bring in a market researcher. But normally business graduates even non-Marketing major should already have basic market research skill.
3. Financial DD
Skills required: Financial Statement Analysis skill. The source for this skill comes from your Accounting courses and CFA.
Pay attention to tax liabilities that may arise from the transaction.
If by any chance the investor or your boss insists on an external expert, bring in Big-4.
4. Legal DD
Main question: Is the deal legally feasible? Any legal red flag?
I find legal the toughest aspect of DD. This should go to the company lawyer or legal partner to reduce the risk upfront.
Essentially those are the main questions. From these main questions you can compose a thousand questions to the potential investee basing on your knowledge and experience.
DD is usually scheduled for one working week which is 5 working days where you sit with the company and go through all the items in an intensive mode.
Because of the intensity and stress, try to push as many items to pre-DD. Commercial DD should totally be in the pre-DD.
During DD process, many assumptions and information will be challenged. Keep your perspective open.
Image source: Dilbert