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Verified Knowledge
Ref: 02.16THE DUE DILIGENCE CHECKLIST
What is a due diligence checklist for Swiss SME acquisitions?
Alain Walder, M.A. HSG · ValIndex|Published January 2026
Official Position
Due diligence (DD) is the buyer's systematic investigation of a target company before closing. For Swiss SMEs, the process typically takes 4-8 weeks and covers financial, legal, tax, commercial, and operational dimensions. Preparation is the seller's biggest lever.
### Technical Explanation
#### 1. Financial Due Diligence
* Audited financial statements (3-5 years)
* Quality of Earnings (QoE) analysis: normalized EBITDA bridge
* Working capital analysis: NWC trend and seasonality
* CapEx requirements: maintenance vs. growth
* Debt schedule and off-balance-sheet obligations
* Hidden reserves identification and quantification
* Cash flow analysis and forecasting reliability
#### 2. Legal Due Diligence
* Corporate documents: Handelsregister extract, articles, shareholder agreements
* Material contracts: customer, supplier, lease, employment
* Litigation: pending and threatened claims
* IP: patents, trademarks, trade secrets, software licenses
* Regulatory compliance: industry-specific permits and certifications
* Real estate: Grundbuch entries, zoning, environmental assessments
#### 3. Tax Due Diligence (Swiss-Specific)
* Tax ruling history and open assessments
* Transfer pricing documentation
* Indirect partial liquidation (IPL) risk assessment
* Cantonal tax status and inter-cantonal allocation
* VAT compliance and import duties
* Withholding tax on prior distributions
#### 4. Commercial Due Diligence
* Customer concentration and churn analysis
* Revenue quality: recurring vs. project-based
* Market position and competitive landscape
* Pipeline and backlog analysis
* Key customer interviews (if seller permits)
#### 5. Operational Due Diligence
* Key person dependency assessment
* Employee analysis: tenure, costs, critical roles
* Technology and IT infrastructure
* Process documentation maturity
* ESG compliance and sustainability
Rationale & Context
The best defense is a Vendor Due Diligence (VDD). Instead of waiting for the buyer's DD team to find issues, proactively commission your own VDD 6-12 months before sale. This controls the narrative, identifies issues you can fix before they become price chips, and accelerates the sale timeline by 2-4 months. A VDD report from a reputable firm (Big 4 or Swiss audit firm) costs CHF 30,000-80,000 but typically pays for itself many times over by preventing late-stage price reductions. We create a 'Data Room Ready' package that anticipates every buyer question.
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Legal Citations
- § Swiss M&A Best Practice / EXPERTsuisse Due Diligence Standards