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The Art and Science of Leading Due Diligence Catherine Chiu and Steve Lamont Keiretsu Forum Northern California
Objectives for This Series <ul><li>Help you become an effective due diligence leader </li></ul>
Objectives for This Series <ul><li>Help you become an effective due diligence leader </li></ul><ul><li>Introduce you to th...
First of a Four-Part Series <ul><li>Due Diligence Process </li></ul><ul><li>Resources and Tools </li></ul><ul><li>Effectiv...
Due Diligence is Art  and  Science
Due Diligence  Focus <ul><li>Unique Value Proposition  </li></ul><ul><li>Sustainable Competitive Advantage / IP </li></ul>...
Due Diligence  Focus <ul><li>Unique Value Proposition  </li></ul><ul><li>Sustainable Competitive Advantage / IP </li></ul>...
Weak Teams “Unravel”
Due Diligence  Focus <ul><li>Unique Value Proposition  </li></ul><ul><li>Sustainable Competitive Advantage / IP </li></ul>...
Due Diligence Process Phase Activities Duration/Timing 1 Initial conference call or meeting/ Q&A Week 1 2 Team formation a...
Due Diligence Process Phase Activities Duration/Timing 1 Initial conference call or meeting/ Q&A Week 1 2 Team formation a...
Due Diligence Process Phase Activities Duration/Timing 1 Initial conference call or meeting/ Q&A Week 1 2 Team formation a...
Due Diligence Process Phase Activities Duration/Timing 1 Initial conference call or meeting/ Q&A Week 1 2 Team formation a...
Due Diligence Process Phase Activities Duration/Timing 1 Initial conference call or meeting/ Q&A Week 1 2 Team formation a...
Due Diligence Process Phase Activities Duration/Timing 1 Initial conference call or meeting/ Q&A Week 1 2 Team formation a...
Due Diligence Process Phase Activities Duration/Timing 1 Initial conference call or meeting/ Q&A Week 1 2 Team formation a...
Due Diligence Process “ Getting Past No” by William Ury “ Negotiating Genius” by Deepak Malhotra and Max H. Bazerman  Phas...
Due Diligence Process Phase Activities Duration/Timing 1 Initial conference call or meeting/ Q&A Week 1 2 Team formation a...
The Art and Science of Leading Due Diligence Catherine Chiu and Steve Lamont Keiretsu Forum Northern California
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Leading Due Diligence - Session 1 - DD Process

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The Art and Science of Leading Due Diligence. Session 1. Catherine Chiu and Steven Lamont

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Leading Due Diligence - Session 1 - DD Process

  1. 1. The Art and Science of Leading Due Diligence Catherine Chiu and Steve Lamont Keiretsu Forum Northern California
  2. 2. Objectives for This Series <ul><li>Help you become an effective due diligence leader </li></ul>
  3. 3. Objectives for This Series <ul><li>Help you become an effective due diligence leader </li></ul><ul><li>Introduce you to the DD Handbook and other resources </li></ul><ul><li>Profile role of the leader </li></ul><ul><li>Discuss guidelines and challenges </li></ul>
  4. 4. First of a Four-Part Series <ul><li>Due Diligence Process </li></ul><ul><li>Resources and Tools </li></ul><ul><li>Effective DD Leadership </li></ul><ul><li>Dealing with Challenges </li></ul>
  5. 5. Due Diligence is Art and Science
  6. 6. Due Diligence Focus <ul><li>Unique Value Proposition </li></ul><ul><li>Sustainable Competitive Advantage / IP </li></ul><ul><li>Cost-Effective Marketing/ Sales Plan & Capabilities </li></ul><ul><li>Rigorous Operations Practices & Plans </li></ul><ul><li>Appropriate Technology Implementation/ Roadmap </li></ul><ul><li>Experienced Management Team </li></ul><ul><li>Attractive and Complete Financial Model with Funding Plans </li></ul><ul><li>Appropriate and Fair Deal Terms </li></ul>
  7. 7. Due Diligence Focus <ul><li>Unique Value Proposition </li></ul><ul><li>Sustainable Competitive Advantage / IP </li></ul><ul><li>Cost-Effective Marketing/ Sales Plan & Capabilities </li></ul><ul><li>Rigorous Operations Practices & Plans </li></ul><ul><li>Appropriate Technology Implementation/ Roadmap </li></ul><ul><li>Experienced Management Team </li></ul><ul><ul><li>Domain expertise; functional & growth experience </li></ul></ul><ul><ul><li>Talents & propensities </li></ul></ul><ul><li>Attractive and Complete Financial Model with Funding plans </li></ul><ul><li>Appropriate and Fair Deal Terms </li></ul>
  8. 8. Weak Teams “Unravel”
  9. 9. Due Diligence Focus <ul><li>Unique Value Proposition </li></ul><ul><li>Sustainable Competitive Advantage / IP </li></ul><ul><li>Cost-Effective Marketing/ Sales Plan & Capabilities </li></ul><ul><li>Rigorous Operations Practices & Plans </li></ul><ul><li>Appropriate Technology Implementation/ Roadmap </li></ul><ul><li>Experienced Management Team </li></ul><ul><li>Attractive and Complete Financial Model and Funding Plans </li></ul><ul><li>Appropriate and Fair Deal Terms </li></ul>Completeness, Thoughtfulness, Proof Points, Logical Consistency
  10. 10. Due Diligence Process Phase Activities Duration/Timing 1 Initial conference call or meeting/ Q&A Week 1 2 Team formation and setting communications standards Week 1 - 2 3 Site visit(s); Company & reference calls; Regular internal DD team calls Weeks 1 - 5 4 DD team reports prepared and posted Weeks 4- 7 5 Consolidated report posted, Soft circle interest determined Weeks 5 - 8 6 Deal negotiations; Term sheets distributed; Hard circle commitments made Weeks 6 - 12 7 Funds deposited; Process review with company Weeks 7 - 14
  11. 11. Due Diligence Process Phase Activities Duration/Timing 1 Initial conference call or meeting/ Q&A Week 1 2 Team formation and setting communications standards Week 1 - 2 3 Site visit(s); Company & reference calls; Regular internal DD team calls Weeks 1 - 5 4 DD team reports prepared and posted Weeks 4- 7 5 Consolidated report posted, Soft circle interest determined Weeks 5 - 8 6 Deal negotiations; Term sheets distributed; Hard circle commitments made Weeks 6 - 12 7 Funds deposited; Process review with company Weeks 7 - 14
  12. 12. Due Diligence Process Phase Activities Duration/Timing 1 Initial conference call or meeting/ Q&A Week 1 2 Team formation and setting communications standards Week 1 - 2 3 Site visit(s); Company & reference calls; Regular internal DD team calls Weeks 1 - 5 4 DD team reports prepared and posted Weeks 4- 7 5 Consolidated report posted, Soft circle interest determined Weeks 5 - 8 6 Deal negotiations; Term sheets distributed; Hard circle commitments made Weeks 6 - 12 7 Funds deposited; Process review with company Weeks 7 - 14
  13. 13. Due Diligence Process Phase Activities Duration/Timing 1 Initial conference call or meeting/ Q&A Week 1 2 Team formation and setting communications standards Week 1 - 2 3 Site visit(s); Company & reference calls; Regular internal DD team calls Weeks 1 - 5 4 DD team reports prepared and posted Weeks 4- 7 5 Consolidated report posted, Soft circle interest determined Weeks 5 - 8 6 Deal negotiations; Term sheets distributed; Hard circle commitments made Weeks 6 - 12 7 Funds deposited; Process review with company Weeks 7 - 14
  14. 14. Due Diligence Process Phase Activities Duration/Timing 1 Initial conference call or meeting/ Q&A Week 1 2 Team formation and setting communications standards Week 1 - 2 3 Site visit(s); Company & reference calls; Regular internal DD team calls Weeks 1 - 5 4 DD team reports prepared and posted Weeks 4- 7 5 Consolidated report posted, Soft circle interest determined Weeks 5 - 8 6 Deal negotiations; Term sheets distributed; Hard circle commitments made Weeks 6 - 12 7 Funds deposited; Process review with company Weeks 7 - 14
  15. 15. Due Diligence Process Phase Activities Duration/Timing 1 Initial conference call or meeting/ Q&A Week 1 2 Team formation and setting communications standards Week 1 - 2 3 Site visit(s); Company & reference calls; Regular internal DD team calls Weeks 1 - 5 4 DD team reports prepared and posted Weeks 4- 7 5 Consolidated report posted, Soft circle interest determined Weeks 5 - 8 6 Deal negotiations; Term sheets distributed; Hard circle commitments made Weeks 6 - 12 7 Funds deposited; Process review with company Weeks 7 - 14
  16. 16. Due Diligence Process Phase Activities Duration/Timing 1 Initial conference call or meeting/ Q&A Week 1 2 Team formation and setting communications standards Week 1 - 2 3 Site visit(s); Company & reference calls; Regular internal DD team calls Weeks 1 - 5 4 DD team reports prepared and posted Weeks 4- 7 5 Consolidated report posted, Soft circle interest determined Weeks 5 - 8 6 Deal negotiations; Term sheets distributed; Hard circle commitments made Weeks 6 - 12 7 Funds deposited; Process review with company Weeks 7 - 14
  17. 17. Due Diligence Process “ Getting Past No” by William Ury “ Negotiating Genius” by Deepak Malhotra and Max H. Bazerman Phase Activities Duration/Timing 1 Initial conference call or meeting/ Q&A Week 1 2 Team formation and setting communications standards Week 1 - 2 3 Site visit(s); Company & reference calls; Regular internal DD team calls Weeks 1 - 5 4 DD team reports prepared and posted Weeks 4- 7 5 Consolidated report posted, Soft circle interest determined Weeks 5 - 8 6 Deal negotiations; Term sheets distributed; Hard circle commitments made Weeks 6 - 12 7 Funds deposited; Process review with company Weeks 7 - 14
  18. 18. Due Diligence Process Phase Activities Duration/Timing 1 Initial conference call or meeting/ Q&A Week 1 2 Team formation and setting communications standards Week 1 - 2 3 Site visit(s); Company & reference calls; Regular internal DD team calls Weeks 1 - 5 4 DD team reports prepared and posted Weeks 4- 7 5 Consolidated report posted, Soft circle interest determined Weeks 5 - 8 6 Deal negotiations; Term sheets distributed; Hard circle commitments made Weeks 6 - 12 7 Funds deposited; Process review with company Weeks 7 - 14
  19. 19. The Art and Science of Leading Due Diligence Catherine Chiu and Steve Lamont Keiretsu Forum Northern California

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