Introduction

What is Due Diligence Process? Due diligence is a business process undertaken as a preliminary security measure to guard against fraud and misrepresentation prior to a business entering an investment or a contract commitment.

Your due diligence should include bank agreements, loans, collateral pledges, warranties, instalment sales, distribution contracts, stock purchases, mergers, acquisitions or noncompetition agreements.

The Post COVID 19 Business Environment requires that due diligence become more rigorous and stringent because an increased number of businesses and persons may share the tendency to engage in criminal pursuits with a view to resurrecting their respective entities after collapsing due to COVID 19.

When a potential buyer assesses and considers your company, they will want to fully understand your financial, legal, operational, technical and HR affairs.

What areas will this ‘Due Diligence Certificate Training Course’ cover? The key items that a business ought to prioritize in a due diligence check is the loss of key staff, the loss of key supplier relationships, default on payments, legal claims and market slumps.

The detection of any of these warning signs of prior poor business performance must be heeded and taken into cognizance to prevent the business from entering into a risky relationship.

Due Diligence Review (DDR) is a process, through which an individual or an organization, seeks sufficient information about a business entity to reach an informed judgment as to its value for a specific purpose. Offers to purchase a business are generally dependent on the results of a due diligence analysis. This includes reviewing all financial and legal records including anything else deemed material to the sale.

Sellers could also perform a due diligence analysis on the buyer which would help the seller to be aware of the buyer’s ability to purchase and of factors that could affect the purchased entity or the seller once the sale has been completed.

This Xcelerate Training Institute course will empower you with the skills to develop, implement, and maintain a comprehensive due diligence procedure for your organization.

Learning Objectives

• Learn how to include critically necessary elements/components in a due diligence analysis
• Discover how to collate strategic acumen in relation to ascertaining best case scenarios post acquisition
• Compile due diligence analyses that extract an optimal advantage from a nexus of both organizational core competences
• Understand your legal obligations in terms of due diligence
• Learn how to enforce provisions encapsulated in the due diligence agreement in the event of non-compliance
• Recognize how to spot common errors when reviewing the components of a due diligence report
• Take preventative and protective control measures to ensure optimum value extraction from the due diligence exercise on behalf of your organization

Training Methodology

This collaborative Due Diligence Training Course will comprise the following training methods:

• Lectures
• Seminars & Presentations
• Group Discussions
• Assignments
• Case Studies & Functional Exercises
• Role plays

Benefits For Your Organization

Companies who nominate their employees to participate in this Due Diligence Training Course can benefit in the following ways:

• Benefit from training your employees on the definition and importance of Due Diligence for an organization prior to committing to strategic partnerships, investments and acquisitions
• Document your Due Diligence information systematically and efficiently
• Improve productivity by teaching your staff about the ultimate value extraction to be obtained from comprehensively analyzing due diligence information
• Achieve higher employee morale, increased productivity, and reduced costs of damage control
• Assess your current organizational strategic leverage potential by evaluating risk comprehensively

Benefits For You

Individuals who participate in this Due Diligence Training Course can gain from it in the following ways:

• Improving your performance through higher efficiency and greater worker productivity by being aware of risk mitigation and the purpose of due diligence analyses
• Engage in conversations about the benefits of employing a comprehensive due diligence analysis on behalf of your organization
• Focus on human factors and issues to analyze the best possible value extraction scenario
• Get an opportunity to work through hands-on exercises in detail to gain the skills needed to facilitate a mutually beneficial due diligence analysis
• Gain the skills to plan, manage, facilitate, and scribe a comprehensive due diligence analysis for your organization

Target Audience

This Due Diligence Training Course would be best suited for:

• CEO’s
• Anyone responsible for writing, reviewing, or approving due diligence analyses
• Business Executives
• Committee Secretaries
• Board Members
• Chairpersons of Boards

Course Outline

INTRODUCTION

• Definition
• Objectives
• Benefits
• Advantages
• Risk profiling
• Commitment & Legalities

THE IMPORTANCE OF DUE DILIGENCE

• Corporate protection & risk mitigation
• Informed judgement
• Potential value
• Specific purpose
• Judicious Resource Utilization
• Combing resources, capabilities and core competencies

TYPES OF DUE DILIGENCE

• Financial
• Accounting
• Tax
• Legal

SCOPE AND OBJECTIVES

• Mutually expressed purpose
• Transversal analysis: financial and operational due diligence
• How to structure a due diligence analysis?
• Technical and Commercial Feasibility Assessment
• Resource availability vs Business synergy
• Legal compliance and liability

ASSESSMENT

• Risk quantification and value assessment
• Viability of Operations
• Liquidity
• Tax position/structure and implications
• Overvalued assets and under recorded liabilities
• Hidden assets and liabilities
• Management quality and key personnel identification

POST ACQUISITION PLAN PREPARATION  

• Integral Components
• Harnessing and sustaining augmented benefits
• Retaining a flexible business arrangement
• Establishing the value proposition post acquisition
• Utilizing core competencies conjunctively to harness & sustain advantage
• Cultivating and entrenching organizational value systems

TASK PRIORITIZATION

• Establishing Critical Priorities
• Resource deployment & strategic objective synergy
• Harnessing Industry Expertise
• Identifying important business units and priorities
• Assessing the value proposition post acquisition
• Segmented skills analysis
• Information security and risk management