DEFINITION of ‘Due Diligence – DD’
1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to a sale.
2. Generally, due diligence refers to the care a reasonable person should take before entering into an agreement or a transaction with another party.
Economic Consultants offer DD Services to any party involved in a transaction. Our well proven investigative method is recognised as one of the best, enabling decision makers to move forward in confidence.
We work with projects within the sectors of Real Estate, Renewable Energy, Agriculture and Meat Production, Hotels and Financial institutions, Hospitals and Infra structure. But, we are industry agnostic and are interested in projects outside these sectors as well.
Our projects are typically minimum US$ 20 M in both emerging markets as well as developed markets around the world. We are very much involved in the real estate sector. Typically the financing can vary from US$ 20 up to US$ 800 M, and we can structure funding across the whole capital structure including Equity, Mezzanine, Senior and Junior Debt in various forms also including Private and Public Bond Issues.
We work with large international banks and investment banks, hedge funds, private equity funds, other types of alternative financing providers, High Net Worth Individuals, Pension Funds and Insurance Companies out of London, New York, Hong Kong and various local markets such as the Scandinavian markets, Frankfurt, Sao Paulo and Johannesburg.
Economic Consultants offers Due Diligence Services all over the world. With close to 50 highly experienced Senior Consultants covering all fields, we can cover all needs for Financial Institution, Insurance Companies, Banks, VC’s or Hedge Funds.
Method of Evaluation
Our analysis is conducted according to the EC 5M Method that analyses a venture according to the following five-dimensions:
M1 Men
Personnel; Employees, Head Count Break and Breakdown, Key Decision- makers and Influencers involved in the venture.
M2 Machine
Products; Technology and Technical aspects, Plants, Land and Assets.
M3 Market
Market Analysis; Market Need, Competitors, Market Trends, Key Players, Market Share, and Market Life Cycle Stage.
M4 Marketing
Marketing Efforts; Sales and Marketing Strategy, Business Development, Partners, and Promotions.
M5 Money
Financial status; Balance Sheets, Financial Ratios, Cash flow, Company Valuation, Outstanding Shares, Current Stock Holders and Share Portfolio.
The findings yielded by our method process for each dimension are summarized using the SWAT method (Strengths, Weaknesses, Opportunities, and Threats). Tables are located at the end of each section, also included in the summary section a non-quantitative grading table.
GUIDELINES
The mandate for our Due Diligence is normally Technical and Commercial. The financial information available as to the financial statements and financial status makes up are part of the total documentation package we deliver. Our, analysis will be made based on the objects own estimates, and should be very thorough and conservative given the nature of the business.
Pictures from the survey and surrounding areas and well known cities are included to visualise our reports.
Evaluation Proceeding & Sources of Information
In order to achieve a good and thorough impression and understanding of a project it is important to meet with as many as possible of the key persons involved. Not only in the company itself, but also with advisors to the company and governmental and regulating bodies.
Summary, Recommendations & Conclusion
The results of our review detailed below in appears in the reports and can be generally summarized into the following illustrated grading table:
|
Dimension |
Grading |
Main Issues |
|
Men |
75% |
Need to strengthen |
|
Machine |
60% |
All fairly well planned t |
|
Market |
50% |
Insatiable, still |
|
Marketing |
30% |
In control |
|
Money |
60% |
With proper funding |
|
Grading Legend |
|
Top 100% – Bottom 0% |
After the grading a list of arguments will follow substantiating the findings.
Recommended Action – Items Prior To Decision
In order to achieve a as good as possible picture of NN and its planned operations, we recommend executing the following actions items prior to making any decision of investment in the company.
The recommendations are all strongly substantiated in order to secure a good forward process.
LIST OF AVAILABLE DOCUMENTS
The client will need to gather a very comprehensive document package, all in accordance with the EC DD Documentation Requirements. These documents are made available against a signed NDA . Index to Due Diligence Documents
How to Order a Due Diligence?
Normally we conduct Due Diligence work in connection with funding processes lead by us. But you are welcome to hire us for separate engagements.
You can go to the Contact us page and send us a request or send an e-mail directly to info@economic-consultants.com.
If you are ready to move forward please download our EC CIS for Due Diligence Requests, complete and return to us and we will contact you within five days.
