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Dictionary by pitch.dog
Investor diligence & data rooms · Working

Red flag report

Also called: red-flag DD report

ELI5

A short report of the biggest deal risks.

Used in conversation

“The red flag report identifies change-of-control consents.”

Definition

A concise diligence report highlighting material issues requiring decision or further work.

Here “Red flag report” means: A concise diligence report highlighting material issues requiring decision or further work.

Pitch context

You will see “Red flag report” 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.

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Sources & evidence · 7

Direct term-level sources and supporting source families.