Investor diligence & data rooms · Working

HR due diligence

Also called: people DD

ELI5

Check employee and workforce issues before a deal.

Used in conversation

“HR due diligence highlighted retention risk.”

Definition

Review of workforce, contracts, compensation, liabilities, culture and key-person dependence.

Here “HR due diligence” means: Review of workforce, contracts, compensation, liabilities, culture and key-person dependence.

Pitch context

You will see “HR due diligence” in fundraising decks, data rooms, term sheets and investor conversations when the discussion reaches investor diligence & data rooms.

Why it matters: In investor diligence & data rooms, a loose definition can change rights, obligations, approval, disclosure or enforceability.

Caution

Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.

Sources & evidence · 7

Direct term-level sources and supporting source families.