Skip to main content

Due Diligence Workflows

Comprehensive due diligence procedures using Companies in the UK MCP.

Overview​

Due diligence workflows help assess companies for:

  • Mergers & Acquisitions
  • Investment decisions
  • Partnership evaluation
  • Supplier vetting
  • Credit assessment

Standard Due Diligence Process​

Step 1: Company Verification​

Ask Claude:

"Verify that [Company Name] is an active UK company and get their registration details"

Claude will check:

  • Company exists and registration number
  • Current status (Active/Dissolved)
  • Incorporation date and type
  • Registered address

Step 2: Financial Analysis​

"Analyze the financial health of [Company Name] including ratios and trends"

Claude will provide:

  • Balance sheet strength
  • Liquidity ratios
  • Solvency metrics
  • Cash position
  • Trend analysis

Step 3: Governance Review​

"Show me the directors and filing compliance for [Company Name]"

Claude will report:

  • Current directors and officers
  • Appointment/resignation dates
  • Filing compliance status
  • Any overdue filings

Step 4: Risk Assessment​

"Identify any red flags or risks for [Company Name]"

Claude will assess:

  • Financial stability indicators
  • Corporate governance issues
  • Filing compliance problems
  • Historical changes and patterns

Red Flags Checklist​

⚠️ Critical Issues

  • Negative shareholders' funds
  • Overdue filings
  • Recent director exodus
  • Qualified accounts

🟡 Warning Signs

  • High debt levels
  • Declining revenues
  • Frequent address changes
  • Multiple dissolved related companies

✅ Positive Indicators

  • Consistent filing history
  • Stable management team
  • Growing shareholders' funds
  • Strong cash position

Example Due Diligence Queries​

Complete Assessment​

"Perform complete due diligence on ABC Limited including financial health, governance, and risk factors"

M&A Due Diligence​

"I'm considering acquiring XYZ Ltd. Analyze their financial position, check for any liabilities, and assess the stability of their management team"

Supplier Vetting​

"We're considering DEF Company as a supplier. Check their financial stability and whether they're a going concern"

Investment Screening​

"Evaluate GHI Tech Ltd as an investment opportunity. Focus on growth trends, profitability, and management quality"

Industry-Specific Considerations​

Technology Companies​

Focus areas when asking Claude:

  • R&D investment levels
  • Key person dependencies
  • Customer concentration
  • Intellectual property (if disclosed)

Retail Companies​

Key metrics to request:

  • Working capital position
  • Inventory levels
  • Cash conversion
  • Property obligations

Manufacturing​

Important aspects to check:

  • Asset utilization
  • Capital expenditure trends
  • Supply chain indicators
  • Working capital management

Due Diligence Report Template​

When Claude provides information, structure your report as:

Executive Summary​

  • Company name and number
  • Current status
  • Overall risk assessment
  • Recommendation

Financial Analysis​

  • Liquidity position
  • Leverage ratios
  • Profitability indicators
  • Cash generation

Governance Review​

  • Board composition
  • Recent changes
  • Filing compliance
  • Corporate structure

Risk Factors​

  • Financial risks
  • Operational risks
  • Governance concerns
  • Market risks

Recommendations​

  • Key findings
  • Areas requiring further investigation
  • Suggested actions

Sequential Due Diligence Workflow​

For thorough due diligence, ask Claude these questions in sequence:

  1. Identification

    "Search for [Company Name] and confirm their company number"

  2. Basic Verification

    "Get full details for company number [number]"

  3. Financial Deep Dive

    "Calculate all financial ratios for [company] with trend analysis"

  4. Governance Check

    "List all current and past directors for [company] with their appointment history"

  5. Risk Summary

    "Based on the information gathered, summarize the key risks and strengths of [company]"

Best Practices​

Start Broad, Then Focus​

  • Begin with company search to ensure correct entity
  • Get comprehensive details before specific analysis
  • Focus on areas of concern identified

Verify Critical Information​

  • Always check company status first
  • Confirm filing compliance
  • Verify key financial metrics

Document Everything​

  • Keep Claude's responses for audit trail
  • Note date of information retrieval
  • Document any limitations in available data

Common Due Diligence Scenarios​

Pre-Investment​

"I need to evaluate [Company] for a potential £1M investment. Assess their financial stability, growth trajectory, and management quality"

Acquisition Target​

"We're considering acquiring [Company]. Analyze their balance sheet, identify any hidden liabilities, and assess integration risks"

New Customer Assessment​

"Before extending credit to [Company], check their payment capability and financial stability"

Partnership Evaluation​

"Evaluate [Company] as a potential strategic partner, focusing on their stability and complementary strengths"

Need help? Use our Contact Form