Red flags in due diligence are the signals that a target is not what it appears to be: aggressive accounting, customer concentration, undisclosed litigation, related-party dealings, sudden management departures, or records that arrive late and incomplete. For a board, the value of diligence lies in catching these before price and terms are fixed, because an unexamined flag becomes an assumed liability. This report catalogues the warning indicators that matter in your chosen jurisdiction and industry, explains why each signals deeper exposure, and offers scenarios and impact ranges drawn from published cases. Written as research to inform your own diligence brief rather than as legal advice, it sets out how thorough acquirers structure verification and when to escalate a finding to forensic accountants, deal counsel or specialist diligence advisers.
Reference material for informed readers, not advice.
