The Essential Due Diligence Checklist for Arab Business Buyers

Whether you are a first-time buyer or an experienced acquirer, a structured due diligence process is the difference between a deal that creates value and one that destroys it. This checklist, refined over 12 years of Arab M&A transactions, covers the essential categories every buyer should review.

Legal & Corporate - Company registration certificates and incorporation documents - Shareholder registry and ownership verification - All regulatory licenses and their expiry/renewal dates - Government contracts and terms - Pending or historical litigation - Outstanding regulatory violations or fines

Financial - Three years of audited financial statements - Bank statements for the same period - Accounts receivable aging report - Outstanding debt schedule - Tax compliance certificates - Off-balance-sheet obligations

Operations - Customer contracts and renewal terms - Supplier agreements and dependencies - Key employee contracts - Equipment inventory and condition reports - Technology infrastructure assessment

Human Resources - Employee headcount and compensation structure - Visa and labor compliance - Key person dependencies - Employment contracts for senior staff

Commercial - Customer concentration analysis - Competitive landscape assessment - Pipeline and sales pipeline review - Brand asset ownership

The Most Overlooked Items

In our experience, buyers consistently underinvest in three areas: labor compliance verification (critical in GCC markets), technology infrastructure assessment, and customer concentration analysis. These are often where the most costly surprises emerge post-close.