Completed Duration: 8 min 12 sec

Executive Summary

The due diligence review of 12 documents related to the Andersen Acquisition identified 6 findings across environmental, employment, financial, and intellectual property areas. The target company demonstrates a strong overall financial position with stable revenue growth and healthy margins. However, two high-priority issues require immediate attention: the Aarhus facility lacks current environmental compliance certificates, and employment contracts for three senior executives do not include non-compete clauses, creating retention risk post-acquisition. Additionally, the accounts receivable aging profile and unexecuted IP assignment agreements represent medium-priority items that should be resolved prior to closing.

Findings

High
Missing environmental compliance certificates for Aarhus facility
Action: Request current certificates from seller
High
Employment contracts for 3 senior executives lack non-compete clauses
Action: Negotiate amendment prior to closing
Medium
Accounts receivable includes DKK 2.3M in 90+ day overdue invoices
Action: Request detailed aging report from seller
Medium
IP assignment agreements not executed for 2 patents filed in 2024
Action: Verify assignment status with patent counsel
Low
Minor inconsistencies in board meeting minutes format
Action: Note for closing checklist
Low
Insurance policy renewal due within 30 days of projected completion
Action: Set calendar reminder for renewal

Documents Analyzed