An operational due diligence checklist for an owner-dependent business

An operational due diligence checklist should help you understand how a business delivers its work and where that delivery depends on particular people.

For an owner-dependent business, I would pay close attention to what the owner does that does not appear in a formal role description. The daily interventions may explain more about continuity than a process chart does.

Use these questions as one part of a wider review with the relevant financial, legal and sector specialists.

Decisions and authority

Ask for the recurring decisions the owner makes. Which could a manager make today? Which would stop if the owner became unavailable? What information or authority is missing elsewhere in the team?

Compare the stated decision structure with recent examples. A chart may name a manager while the actual work still requires the owner’s approval. Record the difference and the evidence behind it.

People and practical capability

Identify the people who hold essential knowledge, relationships or access. Ask how responsibilities are covered during absence and what training or documentation supports a backup.

Avoid assuming that a title proves capability or that a long-serving employee will automatically remain after a transaction. Handle staff conversations through the authorized process and have employment matters reviewed appropriately.

Customer and supplier continuity

Examine how inquiries, commitments, complaints and exceptions are recorded. Can another responsible person understand what has been promised without calling the owner?

Ask which customer or supplier relationships are primarily personal to the seller. Establish what introductions and contractual checks may be needed. Have advisers verify any transfer or consent requirements rather than making assumptions.

Processes and records

Choose several ordinary workflows and follow them through. Check the current instructions, the records of completion and the handling of an exception.

Keep missing evidence separate from evidence of a failure. An unanswered question requires follow-up. It does not automatically establish that the process is broken.

Record each finding with its source, operational consequence, responsible person and proposed resolution. This makes the review useful beyond the meeting in which the question was asked.

Systems and access

Identify the systems needed to operate, their business owners and the appropriate access arrangements. Ask about support, backups and record export. Arrange any technical or security review with suitable specialists.

Do not accept the sharing of personal passwords as a transition plan. The incoming team needs a legitimate way to operate and administer the systems.

Transition requirements

Bring the findings together into a specific handover plan. Which responsibilities need practice? Which relationships need introductions? Which issues must be resolved before relying on continuity?

prioritize by consequence and urgency, with evidence behind each decision. An operational review should leave you with a clearer understanding of what the business can currently sustain and what needs further work.

This perspective complements specialist due diligence; it does not replace it.