Transactional Matters

The due diligence process

 

To assess our initial commitment for a potential investment in a platform/target company, we review the commercial, financial, and legal standing of said company in detail. External advisers including, lawyers, auditors and when warranted business consultants are retained, along with the direct involvement of our Investment Advisory Team, to probe and investigate business prospects, financial performance, management experience, legal status, competitive advantages, challenges and risks of any platform/target company.

 

This comprehensive process covers, among other things, the following additional issues relating to the platform/target company and its management:

  • Forecasts, budgets, techniques used and accuracy of past forecasting;
  • Management structure, board composition, key shareholders;
  • Business model, concentration risks, diversification techniques;
  • Internal disclosure & reporting procedures, IT and ERP systems;
  • Key employees contracts, employee’s incentive plans;
  • Litigation, legal structure, regulatory environment.

 

The Closing

 

Once the due diligence process is completed, the terms of the deal can be finally negotiated and, once value and pricing are agreed by all parties, the lawyers will draw up the final version of the Sale and Purchase/Subscription Agreement and the Shareholders’ Agreement (or variations thereof) that will become legally binding documents. Consideration is then exchanged between the parties.