Here is the short list of the key elements to include in your due diligence binder:
1. Background of the company
2. Background of management
3. The Company’s business plan
4. Audited and unaudited financials since company inception
5. Management discussion of company performance
6. Capitalization Table
7. Leases
8. Employment agreements
9. Purchase or sale agreements
10. Previous letters of intent
With regards to confidentiality issues, a good workaround is to have shortened, publicly circulable versions of the above, with sensitive detail withheld until under non-disclosure.
