Building a Diligence Request List That Actually Gets Answered

The provided-by-client (PBC) or diligence request list is the operational backbone of financial due diligence. It tells the seller what to produce, in what format, and by when, and it tells the buyer's team what is still missing.

Start with scope

Request lists should match the module pack: quick look, standard QoE, full diligence with tax and debt, or lender-focused. Sending a 200-line list on a three-week quick look guarantees non-response.

Align with:

• Deal size and industry template
• Data room already populated by the seller's advisor
• Confidentiality and phased disclosure (employees, customers)

Structure for action

Organize requests so sellers can assign owners:

1. Corporate and legal: Cap table, org chart, material contracts
2. Financial reporting: Monthly financials, TB, GL, flux explanations
3. Revenue: Customer list, contracts, deferred revenue schedule
4. Working capital: AR/AP aging, inventory, capex and fixed assets
5. Debt and cash: Loan agreements, leases, bank statements
6. Tax: Returns, provisions, nexus, transfer pricing (if relevant)
7. HR and benefits: Payroll registers, bonus accruals, key person agreements

Each line should specify format (Excel preferred over PDF scans), period coverage, and due date.

Sequencing matters

Wave requests so analytics can start early:

• Week 1: Trial balance, GL, monthly P&L and balance sheet
• Week 2: AR/AP aging, debt schedule, top customer contracts
• Week 3: Follow-ups from analytics (specific GL accounts, payroll detail)

Parallel workstreams fail when QoE waits on a single missing aging report.

Tracking and follow-up

Maintain a log with status: requested, received, incomplete, N/A. Note who at the seller owns each item. Escalate blockers in weekly deal calls with specific gaps, not "we need more detail."

Takeaway

A good request list is a project plan, not a wish list. Industry templates accelerate drafting. Disciplined tracking prevents the diligence team from stalling while the LOI clock runs.

See our FAQ on typical diligence documents.