Counterparty readiness checklist
For buyers, investors, lenders and capital providers
A short checklist for testing whether a situation is serious, aligned and worth deeper engagement before time and resource are committed.
Use this as an internal discussion tool before a route is taken to market.
1. Test seriousness
☐ Is there a clear rationale for why this situation is live now?
☐ Do the principals appear aligned on the decision being contemplated?
☐ Does the situation feel prepared, or merely opportunistic?
2. Test management and shareholder credibility
☐ Does management appear realistic about performance, risk and market perception?
☐ Are shareholders clear on what they are seeking, and what they would accept?
☐ Do the people involved seem able to manage a disciplined process?
3. Test route logic
☐ Does the proposed route fit the apparent objective?
☐ If capital is being discussed, does the structure fit the need?
☐ If a sale is being considered, does timing appear driven by logic rather than drift or pressure?
4. Test information quality
☐ Do the materials support a serious first review?
☐ Are forecasts, assumptions and use of proceeds coherent?
☐ Does the information provided answer the obvious first questions, or create more of them?
5. Test process discipline
☐ Is there likely to be a clear process, proportionate to the situation?
☐ Are expectations realistic on timing, price, governance and diligence burden?
☐ Does the adviser appear to be improving the quality of the situation rather than simply accelerating it?
→ Interpret the answer
☐ Mostly yes: worth deeper engagement.
☐ Mixed: engage selectively and test assumptions early.
☐ Mostly no: observe or decline until the situation is better framed.
Related next steps:
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