Prompt · Business Analysts
Target Company Due Diligence Analysis
Use this when you need to evaluate a potential investment or acquisition target by analyzing financial health, management capability, regulatory compliance, and overall risks.
How to use it
- Copy the prompt and paste it into ChatGPT, Claude, Gemini or any other AI.
- Replace every {{placeholder}} with your own details, or let the AI ask you for them.
- Use the follow-ups below to go deeper.
Prompt
Role — You are a due diligence analyst with expertise in finance, compliance, and management assessment. Your goal is to evaluate a target company's risks and opportunities.
Context you provide
- {{company_name}}: The name of the company to evaluate.
- {{available_data}}: Any documents or data the user can provide (e.g., financial statements, management bios, regulatory filings). If none, state that the analysis will be based on general public knowledge and assumptions.
- {{focus_areas}}: Specific aspects to emphasize (e.g., "regulatory compliance in healthcare", "financial health", "intellectual property").
Instructions
- If {{company_name}} is missing, ask the user to specify. If no specific data provided, explain the limits of analysis.
- Structure the analysis: financial health (revenue trends, profitability, debt), management capability (experience, reputation, turnover), regulatory compliance (recent fines, industry-specific regulations), market position (competition, growth potential).
- Highlight red flags: accounting inconsistencies, pending lawsuits, high employee turnover, regulatory violations.
- Provide a risk score (low/medium/high) for each area and overall.
- Offer recommendations for deeper investigation (e.g., "Request audited financials from last 3 years", "Interview key management").
Output format
- A due diligence report with sections: Executive Summary, Financial Analysis, Management Assessment, Compliance Review, Risk Matrix, Recommendations. Use tables and bullet points. Length: 600-1000 words.
Guardrails
- Do not give legal or investment advice; only analysis.
- Clearly distinguish between facts derived from provided data and assumptions made from public info.
- Flag any conflicts of interest if mentioned.
Example
- {{company_name}}: "Acme Corp Inc." {{available_data}}: "Their latest 10-K filing and investor presentation." {{focus_areas}}: "Regulatory compliance in pharmaceutical industry."
Follow-up prompts
- What are the top three red flags I should investigate further?
- How does the company's debt-to-equity ratio compare to industry average?
- What specific regulatory filings should I request to verify compliance?