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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