Internet research is a good way to start. Around the world, public companies that use the eXtensible Business Reporting Language (XBRL) are literally posting a searchable database about themselves for all to explore. In the case of a US publicly traded company, there are a wealth of filings to study, including annual reports on Form 10-K, quarterly reports on Form 10-Q, and many more. The SEC has more than 100 different forms that a public company may have to file, depending on circumstances. These are a gold mine of information for due diligence.

Some filings may include key agreements, contracts, and other significant company documents filed as exhibits. Of particular note in the United States is the Management Discussion and Analysis (MD&A) section of the annual report on Form 10-K, containing an exhaustive list of  risks.

Even still, the acquirer will undoubtedly want to go into deeper detail than what’s available publicly. Accordingly, the acquirer will typically provide the target with a due diligence request list once it appears that there is mutual interest in pursuing a merger discussion.

In the case of private companies, the process is much more difficult, as most information is unpublished. Most companies today, however,  do have websites, and this is a good place to begin. For more guidance on obtaining information about private companies, see Strategy, in the section titled “The Search Process.”