Generate Due Diligence Red Flag Report from Data Room Contracts
Scan data room contracts and produce a structured red flag report with risk-scored matrix, executive summary, missing document list, and recommended seller follow-ups.
The Prompt
Variables (2)
| Variable | Description | Example |
|---|---|---|
| {{contract_count}} | Number of Contracts | 250 |
| {{target_company}} | Target Company Name | Northstar Logistics Inc. |
Expected Output
A structured red flag report containing: executive summary of top 5 deal risks, contract-by-contract risk matrix, missing document list, and recommended seller Q&A items, with clause excerpts and mitigation strategies for each flagged item.
Usage Notes
Use after data room contracts are uploaded to the AI tool. Always have an associate verify any Critical-rated change-of-control flag against the actual contract text, since AI extraction confidence on assignment language can vary. Cross-reference the missing document list against the original due diligence request list to confirm gaps are real.
Originally featured in: AI for M&A Lawyers: Due Diligence, LOI Drafting & Deal Room Automation (2026)
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* These prompts are drafting and analysis aids for licensed attorneys. They are not legal advice and do not replace professional judgment. AI output can contain errors, including invented citations and incorrect deadlines: verify every fact, figure, authority and deadline against primary sources before relying on it. Rules vary by jurisdiction, and you remain responsible for the final work product.