Mohit
fb85a1cb55
Processed 27 skills: teaching-lesson-plan through feature-prioritisation and all figma skills. Added Anti-Patterns sections to all 27 skills. Added Quality Checks section to financial-due-diligence (was missing entirely). Converted user-research-synthesis Quality Standards to binary checkbox format. Rewrote descriptions for figma-design-critique-pm, figma-design-qa, figma-design-review, team-health-check, and user-interview-synthesis. https://claude.ai/code/session_01MuGKn3a3Gbqoe8uM5Lmuqt
93 lines
3.9 KiB
Markdown
93 lines
3.9 KiB
Markdown
---
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name: financial-due-diligence
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description: "Generate a financial due diligence checklist and analysis framework for any investment, acquisition, or partnership. Use when asked for a due diligence checklist, M&A financial review, investment analysis framework, or vendor financial assessment. Produces a document request list, key analytical questions, red flags checklist, and a summarised financial health assessment."
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---
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# Financial Due Diligence Skill
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Produces a structured financial due diligence framework — document request list and analytical questions — for any investment, acquisition, or significant commercial relationship.
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## Required Inputs
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- **Transaction type** (acquisition / investment / partnership / supplier / fundraise)
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- **Stage of diligence** (initial screening / full DD / confirmatory)
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- **Target company type** (startup / SME / listed / subsidiary)
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- **Key concerns** (optional — e.g. revenue recognition, customer concentration)
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## Output Structure
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### 1. Document Request List
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**Financial Statements**
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- Audited accounts for last 3 years
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- Management accounts for current year (monthly)
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- Board-approved budget and latest reforecast
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- 3-year financial model with assumptions
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**Revenue**
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- Revenue by customer (top 20, % of total)
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- Revenue by product/segment
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- Contracted vs recurring vs one-off breakdown
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- Churn and renewal data
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**Costs**
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- Cost of sales breakdown
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- Headcount by department with compensation detail
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- Top 10 supplier contracts
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**Cash and Debt**
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- Bank statements (12 months)
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- Debt schedule with covenants and maturity
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- Working capital analysis
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**Tax**
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- Last 3 years tax returns
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- Any open enquiries
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- R&D tax credit claims
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### 2. Key Analytical Questions
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**Revenue quality:** Is revenue growing organically? What % is truly recurring? Customer concentration risk?
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**Margin analysis:** Gross margin trend over 3 years? One-off items inflating EBITDA? Normalised EBITDA?
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**Cash conversion:** Does profit convert to cash? Cash conversion cycle? Working capital red flags?
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**Debt and liabilities:** Net debt position? Contingent liabilities? Covenant headroom?
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### 3. Red Flags Checklist
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- Revenue concentration over 30% in one customer
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- Declining gross margins without explanation
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- EBITDA-to-cash conversion below 70%
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- Auditor qualifications or emphasis of matter
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- Related party transactions not at arm length
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- Aggressive revenue recognition
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- Growing debtor days with no explanation
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### 4. Summary Output Template
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- Revenue quality: [Assessment]
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- Margin sustainability: [Assessment]
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- Cash generation: [Assessment]
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- Balance sheet risk: [Assessment]
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- Overall: Green Strong / Amber Acceptable / Red Material concerns
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## Quality Checks
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- [ ] Document request list is tailored to the transaction type and stage — not a generic template
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- [ ] Red flags checklist covers revenue quality, margins, cash conversion, and balance sheet risk
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- [ ] Every analytical question connects to a specific risk the transaction presents
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- [ ] Summary output template is completed with an overall RAG assessment
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- [ ] Disclaimer that this is a framework and does not substitute for qualified financial or legal advice
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## Anti-Patterns
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- [ ] Do not present the checklist without tailoring it to the specific transaction type and stage of diligence
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- [ ] Do not overlook revenue concentration risk — customer concentration above 20–30% is a material risk that must be flagged
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- [ ] Do not confuse EBITDA with cash — always check cash conversion and identify non-cash items
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- [ ] Do not skip the related-party transaction review — undisclosed related-party dealings are a common due diligence failure point
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- [ ] Do not produce output without noting this is a framework and qualified financial and legal advice is required
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## Example Trigger Phrases
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- "Give me a financial due diligence checklist for [company type]"
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- "What documents should I request for financial DD?"
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- "Build a DD framework for our Series A investment"
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