Due Diligence: Supplier Due Diligence

THIS IS THE FREE, REDACTED VERSION OF THE TASKS IN THE M&A REFERENCE MODEL  AND IT IS LICENSED UNDER Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International THE FULL SET OF DATA HAS TO BE LICENSED COMMERCIALLY.  HERE is a full model example for one task. 

  The task has the following goal(s):

Supplier of the target: analyzed

 The task has the following objectives:

Information asymmetry: minimized

Integration success: maximized

 Short description of task Supplier Due Diligence:

All target suppliers and supplier relationships are being analyzed and reviewed.

Tool: Abrams World Trade Wiki

The tool automates the following actions

• Assess supplier relationships: partially automated.

• Assess supplier performance: not automated.

• Assess supply chain complementarity: partially automated.

• Assess supply chain risk: partially automated. 

Questions to be used during the execution of the task

The task is executed with the following questions, among others:

• What has been the supplier's historical performance and standing within the industry?

• What is the duration of the supplier's operational existence, and what does their ownership configuration entail?

• Is the supplier able to furnish recent financial documentation, encompassing balance sheets, income statements, and cash flow statements?

• What is the supplier's credit rating, and what are the stipulations of their financing agreements?

• What are the principal terms and conditions delineated in the existing contracts with the supplier, particularly concerning termination provisions?

• Are there any exclusivity arrangements or long-term commitments that may influence prospective operations?

• What methodologies does the supplier employ to establish pricing, and are there protocols in place for price modifications?

• What constitutes the itemization of expenses related to the supplier's goods or services?

• What strategies has the supplier instituted to guarantee the continuity of supply chains amidst potential disruptions (e.g., natural disasters, geopolitical circumstances)?

• Are there alternative suppliers or contingency frameworks established to alleviate risks associated with supply interruptions?

• What quality control protocols does the supplier implement, and how frequently are these audited?

• Have there been any recent product recalls, defects, or quality-related concerns linked to the supplier?

• Is the supplier in compliance with pertinent industry regulations, standards, and certifications (e.g., ISO, FDA)?

• Are there any ongoing or recent regulatory inquiries, fines, or sanctions imposed on the supplier?

• What is the supplier's existing production capacity, and how adaptable is it to accommodate future demand?

• What are the supplier's lead times for production and delivery, and what strategies do they employ to address production bottlenecks?

• Who constitutes the supplier's key suppliers, and to what extent do they depend on single-source suppliers?

• What is the geographical dispersion of the supplier's supply chain, and are there any associated geopolitical risks?

• What technological platforms and systems does the supplier utilize to oversee operations, inventory, and logistics?

• How does the supplier allocate resources toward innovation and technological advancements to maintain competitive parity?

  THIS IS THE FREE; REDACTED VERSION OF THE TASK IN THE M&A REFERENCE MODEL: THE FULL SET OF DATA HAS TO BE LICENSED

  (C) Dr. Karl Michael Popp 2025