Due Diligence in Corporate Finance

Overview

Course Overview:

 This course provides an understanding of the concept and obligations of a due diligence investigation as it relates to both public and private transactions including acquisitions, disposals and fund raisings.

 Practical advice is given on the fundamental principles, techniques and procedures of due diligence and on the different objectives in the due diligence process, covering commercial, financial and legal due diligence and also the more specialised areas of investigation.

 The roles of the professionals involved will be separately examined with emphasis on examples of problems that might arise as a result of inadequacies in due diligence procedures.

 Course Content:

 Background

Ø       When should due diligence start?

Ø       When, why, how and where is it applied?

Ø       Material and probable risk

Ø       Interaction with warranties

Ø       The core due diligence team

 Commercial due diligence

Ø       Evaluate the opportunity

Ø       Understand the target's business

Ø       Test the results

Ø       Analytical techniques

Ø       Analyse the risk

 Legal due diligence

Ø       Objectives

Ø       Financial and commercial operations

Ø       Transitional support

Ø       Litigation analysis

Ø       Compliance review

Ø       Personnel and employment

 Financial due diligence

Ø       Plan the work

Ø       Test the internal controls

Ø       Investigate assets, liabilities and sales

Ø       Analyse cash/revenue movements

Ø       Capex & depreciation

Ø       Working capital, net cash & debt

Ø       Indicators of potential fraud

Ø       Vendor due diligence

Ø       Handling the data room

Ø       Contents of the due diligence report

 Further investigations

Ø       Environmental due diligence

Ø       IPR and technology due diligence