MG84
Course Contents
Module 1: What is Due Diligence?
Key Topics
- Conducting a detailed investigation on a target business after successfully completing preliminary negotiations with its owner
- Four types of due diligence: commercial, legal, financial and tax checks.
- Negotiating additional, more detailed terms and conditions in its final agreement with the business’s owner.
- What ‘caveat emptor’ dictates
Module 2: Due Diligence Within the Steps of a Transaction
Key Topics
- Initial contact
- Preliminary terms
- Investor’s due diligence
- Final terms
- Negotiate contracts
Module 3: How Does it Actually Work?
Key Topics
- Before the due diligence
- Due diligence kick-off
- The due diligence process
Module 4: Investor Due Diligence Challenges
Key Topics
- Investment due diligence challenges
- Ensuring cooperation
- The ability to provide/disclose information
- Analysis of the investor’s potential conflicts of interest and possible different motivations to engage in the investment process, other than the investment opportunity itself
Module 5: Reverse Due Diligence: by the Investee on the Investor
Key Topics
- History and track record of the investor from publicly available sources
- Obtain references to check the investor’s industry reputation
- Check for “red flags”
- Direct Q&A with the investor to probe its stance on key matters of importance to the investee and its degree of openness
