A Due Diligence Checklist for Local Partners

Due diligence on a local partner does not require a forensic accounting team for every deal. It does require a consistent checklist so nothing important is skipped under deadline pressure.

Registration and ownership

• Confirm company registration number and legal name match all documents
• Identify ultimate beneficial owners — not just signatories
• Check for pending litigation or regulatory actions in public records

Operational verification

• Visit at least one warehouse, showroom, or service location unannounced if possible
• Confirm employee count and key personnel tenure align with claims
• Review insurance coverage relevant to your product category

Commercial references

• Contact two current principals and one former principal
• Ask specifically about payment timeliness and dispute history
• Verify claimed retail or client relationships independently where feasible

Agreement readiness

• Confirm your standard IP, confidentiality, and termination clauses are negotiable before deep commercial discussions
• Identify who has authority to bind the company — title alone is insufficient

Reputational scan

• Search local trade press and industry association records
• Ask your embassy or trade office if any advisories exist (particularly for newer markets)

Use this checklist as a starting point; your industry may require additional items such as product certification audits or environmental permits.

For a facilitated review of your specific partner situation, consider our Partnership Strategy Assessment.