Diligence checklist
Deal red-flag checklist
A checklist is not a verdict. It makes the uncomfortable questions visible.
Change the number
What the math says Metric - Waiting on inputs. Metric - Waiting on inputs. Metric - Waiting on inputs. Metric - Waiting on inputs.
The first number is only the beginning.
Sponsor - Debt/model - Documents/urgency -
The chart will name the assumption carrying the most weight once the model runs.
Scenario check
| Case | Result | What moved |
|---|
Assumption ledger
Assumption coach Move an input to see what assumption is carrying the story.
Which flag has evidence behind it?
Treating zero flags as approval
No checklist can approve an investment. It can only keep you from skipping obvious questions.
What this number is really saying
Red flags are not drama. They are places where evidence needs to beat charisma.
The assumption to attack
Look for clusters. One concern may be explainable. Five concerns in the same deal usually means the story is doing too much work.
What the math is ignoring
Context, mitigants, actual documents, and whether the sponsor has earned the benefit of the doubt.
Headline, stress, proof.
- Start with the headline result.It names the current modeled answer, not the decision.
- Compare the stress cases.The scenario strip shows which assumption makes the answer fragile.
- Use the ledger as a diligence list.Every input should map back to a document, invoice, statement, term sheet, or named assumption.
Documents before confidence.
PPM, operating agreement, lender quote, sponsor record, third-party reports, market data, and any document that disagrees with the pitch.
Stress before trust
- Treating zero flags as approval
- Ignoring one giant flag
- Letting urgency outrun evidence
Make the model answer.
- Which flag has evidence behind it?
- Who owns the fix?
- What would make this unacceptable?
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