olo-sec-scanner_skill

Overview

This skill analyzes SEC EDGAR filings to support M&A due diligence by extracting financials, detecting risks, and tracking material corporate events from 10-Ks, 10-Qs, and 8-Ks. It summarizes XBRL financials, flags risk-factor changes, surfaces 8-K material events, and highlights governance and ownership signals relevant to transactions. The output is a concise, actionable report suitable for deal teams and commercial diligence workflows.

How this skill works

The scanner fetches filings and XBRL facts from the SEC EDGAR APIs and parses financial line items (revenues, EBITDA, cash flows, balance sheet). It parses textual sections (Item 1A risk factors, MD&A, footnotes) to categorize and score risks and to detect new or escalated disclosures. 8-K items, DEF 14A, and Forms 3/4/13D/G are indexed to surface material events, insider activity, and ownership concentration that affect deal risk and valuation.

When to use it

• Pre-deal screening of targets to identify deal breakers and key risks
• Preparing data rooms and red flags for bidders and acquirers
• Validating seller financial trends and run-rate metrics from XBRL
• Monitoring target corporate events during live negotiation or exclusivity
• Post-signing covenant and disclosure monitoring from subsequent 8-Ks and 10-Qs

Best practices

• Start with CIK-based queries to ensure comprehensive filing retrieval and XBRL mapping
• Cross-check XBRL-extracted metrics with textual footnotes for non-standard presentations
• Compare risk-factor language year-over-year to detect newly disclosed material risks
• Prioritize 8-K items (1.01, 2.01, 4.01, 5.02) and auditor changes as near-term deal signals
• Use ownership and Form 4 trends to assess insider conviction and potential blocking stakeholders

Example use cases

• Generate an executive M&A diligence snapshot: financial trends, top risks, recent 8-K events
• Flag change-of-control triggers and golden-parachute clauses before LOI execution
• Quantify customer concentration and contingent liabilities for valuation adjustment modeling
• Detect activist filings or large 13D/G positions that could complicate a takeover
• Monitor post-signing filings to surface covenant breaches or undisclosed liabilities