The due diligence checklist for acquisition is a series of steps taken to determine the viability and risk of a proposed transaction. It involves researching the target company, assessing legal issues and financials, such as debt, liquidity and profitability. It also includes examining any existing contracts or agreements, warranties and other liabilities. A thorough assessment of the target company must be completed in order to evaluate its strengths, weaknesses, opportunities and threats. A comprehensive due diligence process will help identify any red flags that could derail the transaction and minimize potential risks. Through this process, both parties can assess whether the acquisition would be beneficial and worth pursuing.