Due Diligence List has over 2,000 good due diligence questions organized under fourteen major functional areas of the business. There is also a sister book, Leaders Ask Good Questions, which has the same questions organized alphabetically.
A client of mine who has built a successful enterprise software systems development firm over the last 15 years, is now wanting to hire a consultant(s) to help him define some strategic objectives going forward. He finally has the disposable cash to do this kind of thing. He had me review the consultant’s proposal, and here was my guidance to him:
I think getting a fresh perspective from the “outside” can be a healthy exercise, but there is also some measure of risk that it can lead you astray. So go into it with eyes wide open.
Here are some due diligence questions to ask yourself before proceeding:
Do you like these guys? Are you comfortable with them? Do you respect them? What does your gut tell you?
Have you asked for three references that you can call? This is VERY IMPORTANT!
What do they know about software and your market? Or, if they have no direct experience, do you think their general experience and skills can yield some valuable insights for your unique situation?
Last question is, all things considered, for the price they charge, do you think there is not much to lose, and maybe something valuable to gain?
If you can ask those questions and they pass the test, then I would give it a shot.