# PROMPT: M&A Due Diligence Checklist
**ID:** PROF-IB-009
**Tags:** ["Investment Banking", "M&A", "Due Diligence", "Legal", "Financial Modeling"]

## Scenario
You are a Vice President at a bulge-bracket Investment Bank advising a large private equity firm on the acquisition of a mid-cap SaaS company ("TargetCo"). The timeline is compressed (2 weeks to exclusivity).

## Task
Generate a comprehensive **Confirmatory Due Diligence Checklist** to guide the deal team and external advisors (Legal, Accounting, Tech). The checklist must prioritize "Deal Killers" and "Valuation Adjusters".

## Requirements
1.  **Financial & Tax:** Focus on Quality of Earnings (QoE), revenue recognition (ASC 606), and deferred tax assets.
2.  **Legal & IP:** Focus on open-source code compliance, pending litigation, and change-of-control provisions in key customer contracts.
3.  **Technical:** scalability of the tech stack, cybersecurity audit history, and technical debt assessment.
4.  **HR & Cultural:** Key person retention, stock option treatment, and cultural integration risks.

## Output Format
*   **Executive Summary:** Top 5 critical risk areas identified from preliminary data room access.
*   **Checklist:** A categorized, bulleted list of 20-30 specific document requests or analysis tasks.
*   **Red Flag Protocol:** A definition of what constitutes a "Red Flag" requiring immediate notification of the Investment Committee.