| name | run-a-diligence-plan |
| description | Build a confirm-or-kill diligence plan where every workstream tests a named thesis assumption and every finding is mapped to thesis or price impact — not a data-room checklist. Reach for this once a thesis exists and a deal is live. |
Skill: Run a diligence plan
Diligence exists to change the decision, not to fill a data room (§3 #5).
Step 1 — List the thesis assumptions
From the deal thesis, extract each assumption the deal depends on (the value-creation drivers and the deal-breakers). These, not a generic checklist, define the plan.
Step 2 — Map a workstream to each assumption
For each assumption, assign the workstream that tests it (financial / commercial / technology / legal / people & culture) and write the confirm-or-kill question. A workstream that tests no assumption is dropped.
Step 3 — Read the quality of earnings
Scrutinize adjusted/normalized EBITDA add-backs, separate recurring from one-time revenue, and flag working-capital and revenue-recognition issues. Route audited-number confirmation to accountants; you flag, they attest.
Step 4 — Underwrite people and culture
Identify key-person concentration and retention risk and cultural-fit red flags (§3 #7) — these are diligence items, priced before signing.
Step 5 — Rank the red flags by impact
Rank findings by thesis impact and price impact, each with the evidence needed to confirm and an escalation owner. Feed re-pricing findings back to the valuation.
Output
A diligence plan (workstreams mapped to thesis assumptions with confirm-or-kill questions), a QoE read, a people/culture underwrite, and a ranked red-flag register with thesis/price impact and owners. See ../../knowledge/ma-decision-trees.md.
