GuidesReportNovember 5, 2026Dennis Raisich

The due diligence report

The due diligence report sums up what the review has found: the material risks, the evidence for them in the documents and what they mean for the purchase price and the purchase agreement. It starts with a management summary, followed by the findings by area.

In short

Structure: management summary, scope of the review, findings by area, recommendations, appendix.
A good finding states the facts, the source, the impact on the deal and a recommendation.
A red flag report covers only the material risks, while a full report describes every area.
A real report from majiq, anonymized, is available as a sample report.

How is a due diligence report structured?

Management summary. The most important findings on a few pages, for decision-makers who don’t read the whole report.
Scope and basis. What was reviewed and what wasn’t, the reference date, the data room cut-off, assumptions.
Findings by area. Corporate, contracts, financials, tax, HR and more, each finding with a rating.
Recommendations. What to do in the purchase agreement, on the price or before closing.
Appendix. List of the documents reviewed, open questions, details.

What makes a good finding?

A finding is more than an observation. It says which document contains what, why that matters for the deal and what to do about it. A fictional example:

Part	Example
Facts	The framework agreement with the largest customer allows termination on a change of ownership.
Source	Framework agreement, clause 14.2
Impact	Around 40% of revenue depends on this customer, and the business plan assumes this revenue continues in full.
Recommendation	Make the customer’s consent a condition for closing; alternatively, adjust the purchase price.

If the source is missing, the finding can’t be verified. If the recommendation is missing, it remains unclear what the finding means for the deal.

Red flag report or full report: which one fits?

A red flag report covers only what puts the deal at risk or changes the price. It is quick and often enough at an early stage or for smaller transactions. A full report describes every area, including those where nothing was found. In vendor due diligence, the seller gives the report to the bidders. They rely on it, which is why the parties agree on who may rely on the report and to what extent.

The report from majiq

majiq writes the draft report: it starts with a management summary, followed by the findings by area, the value potential and the appendix. Every finding is backed by evidence from your documents and comes with a concrete recommendation, and in the online report, every statement leads to its source. You accept or reject the AI’s suggested changes. You review the report, approve it and share it as a link or PDF. The sample report shows what this looks like: a real report from majiq, anonymized.

Frequently asked questions

How long is a due diligence report?

That depends on the scope. A red flag report can be a few pages long, while a full report on a group of companies can run to several hundred. What counts is a management summary that sets out the essentials in a few pages.

Who receives the report?

The party that commissioned it, usually the buyer and its lenders. In vendor due diligence, the seller passes it on to the bidders.

What is the difference between a finding and a recommendation?

The finding describes what the review has shown and where it appears in the documents. The recommendation says what follows from it, such as a warranty in the purchase agreement or a price adjustment.