Commercial Due Diligence (CDD) - Due Diligence Process – PowerPoint PPT Template

DUE DILIGENCE PPT TEMPLATE DESCRIPTION

Explore our Commercial Due Diligence (CDD) PPT, crafted by ex-McKinsey & Big 4 consultants. Streamline your investment evaluation with expert frameworks and templates. Commercial Due Diligence (CDD) - Due Diligence Process is a 16-slide PPT PowerPoint presentation template (PPT) available for immediate download upon purchase.

Explore Slides inside the Deck:

First Round Bid: Key Due Diligence Activities Structured Approach to Initial Investment Screening Due Diligence Process: Phases and Key Activities

Commercial Due Diligence (CDD) is the process undertaken before a transaction is finalized to evaluate the target/investment and attain a high degree of confidence in the assumptions (e.g., financial, operational) underlying the bid.

Due Diligence is the second phase in the 5-phase Direct Investment Value Chain:

1. Deal Sourcing
2. Due Diligence
3. Deal Structuring
4. Value-added Monitoring
5. Monetization

This presentation introduces the Direct Investment Value Chain. It further breaks down the Due Diligence phase into a 4-phase process and delineates the Preliminary and Detail Due Diligence Process steps. This framework is developed within the advisory perspective of a management consulting firm, although it can also be used directly by the buying company.

This document also includes slide templates you can use in your own business presentations.

This deck is an excerpt from our more comprehensive framework, Commercial Due Diligence (CDD).

This PPT provides a comprehensive breakdown of the Due Diligence process, starting with the Initial Screening and moving through to the First Round Bid. It details the key activities involved in each phase, including the creation of standardized memos and the rigorous analysis of financial models. The framework is designed to ensure that all critical aspects of the target investment are thoroughly evaluated, providing a robust foundation for decision-making.

The presentation also covers the Commercial and Strategic Due Diligence processes, highlighting the importance of preparation and execution. It includes detailed templates that can be customized for your specific needs, making it a practical tool for any organization involved in direct investment. This document is an essential resource for professionals looking to streamline their due diligence efforts and maximize the value of their investments.

DUE DILIGENCE PPT TEMPLATES

First Round Bid: Key Due Diligence Activities

The First Round Bid phase of the Direct Investment Value Chain involves a structured due diligence process lasting approximately 4 weeks. Key activities include assessing the management group to evaluate leadership capabilities and credibility, which encompasses discussions on performance incentives and succession planning. Conducting reference checks with customers, suppliers, and former employees is essential for validating management claims and understanding external perceptions. Analyzing the industry and company includes reviewing economic forecasts and tax implications to grasp the market context. The valuation and scenario analysis stage requires creating a detailed financial model that outlines key business drivers and stress-tests management assumptions. Finally, engaging with experts to examine environmental, structural, and legal issues ensures comprehensive consideration of all relevant factors before investment decisions.

Structured Approach to Initial Investment Screening

The initial screening process for direct investment includes 3 key activities: Conduct Preliminary Evaluation, Produce Investment Memorandum Review, and Conduct First Round Review with Decision Makers. The Conduct Preliminary Evaluation requires a swift review of the company's business and management structure, with a standardized one-page summary completed within 48 hours. A core team of 2-3 individuals is assigned to ensure focused attention. The Produce Investment Memorandum Review involves a 5- to 7-page memo summarizing key issues and preliminary assessments, completed within one week. This phase includes gathering feedback within 2 to 3 days and conducting a “beat-up” session with stakeholders to challenge assumptions. The Conduct First Round Review with Decision Makers focuses on circulating a revised investment memo for approval to proceed with in-depth due diligence, consolidating insights from previous evaluations, and aligning decision-makers on next steps within 1 to 2 days.

Due Diligence Process: Phases and Key Activities

This PPT slide template outlines the second phase of the Direct Investment Value Chain, focusing on the Due Diligence process, which includes Initial Screening, First Round Bid, Shortlist, and Exclusivity. Initial Screening initiates deal sourcing through personal networks and emphasizes outside-in analysis with limited data access, seeking insights from industry experts to filter potential deals. The First Round Bid lasts 4 weeks, involving an information memorandum, periodic management meetings, and discussions with at least 2 financing banks to analyze debt potential, culminating in an indicative bid based on due diligence. The Shortlist phase spans 6 weeks, focusing on formal due diligence using a Data Room and management insights covering financial, legal, and commercial aspects, including financial structuring and negotiations on contracts. Exclusivity finalizes the legal agreement with the seller, confirming due diligence on key terms and planning for the first 100 days post-acquisition to execute improvement opportunities.

Source: Best Practices in Due Diligence PowerPoint Slides: Commercial Due Diligence (CDD) - Due Diligence Process PowerPoint (PPT) Presentation Slide Deck, LearnPPT Consulting