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These HR Due Diligence Checklists, used during M&A pre-close investigations, are organized into six major sections:
- Employees — Headcount by category (full-time, part-time, temporary, contract, exempt/non-exempt), org structure of the HR department, reporting lines, year-over-year staffing trends, and whether HR is involved in major business decisions.
- Union Issues — Collective bargaining agreements, union representation, labor relations history.
- Employee Compensation and Benefits — Pay structures, benefits programs, and related policies.
- Retirement Plans, 401(k)s, and ESOPs — Plan types, funding status, and liabilities.
- Culture — Organizational culture factors relevant to integration risk.
- Legal and Regulatory Issues — Employment law compliance and exposure areas.
Each section is structured as a numbered list of detailed diligence questions (the Employees section alone has at least 8+ questions covering headcount segmentation, overtime exemption status, contractor usage, and staffing trend changes).
A buyer's HR and legal team would use this document to interview target-company management and request supporting data (employee rosters, comp data, plan documents) before close.