integrity due diligence
DESCRIPTION
Definition of integrity due diligence; steps to performing successfully integrity due diligence. This powerpoint presentation is useful to all investors: angel investors, venture capitalists, individual investors, or small investors. It is also useful to any person or company who is in the process of M&A, or joint-venturesTRANSCRIPT
+Definition of Integrity Due Diligence (IDD)
Is defined as the identification of the ethical risks from establishing third party relationships to protect your money, investment and reputation.
Helps to bring transparency to what may appear opaque businesses or people.
Copyright 2011, Femvestor, Inc.
+IDD is Positioned last in a Business Pre-Deal But still extremely Important
• Open to Business?Market Risk
• Viable?Business
• Good?Credit/ Finance
• Lawsuits?Legal Issues
• Bribery?Political Issues
• IDD: Transparent?Principle Players
Copyright 2011, Femvestor, Inc.
+IDD Checks Third Party:
Third Party
Interest
Reputation
Activities
Association
Track Recor
d
Motives
Copyright 2011, Femvestor, Inc.
+IDD Tries to Answer the Following Questions
Who is the Beneficiary Owner?
Reputation?
Corruption?
Political Support?Organized Crime?
Money Laundering?
What does it really own?
Copyright 2011, Femvestor, Inc.
+IDD Can Help Uncover the Followings
Lack of transparency on
the ultimate beneficiary
owner
Poor reputation Past Corruption Poor track record
Uncertainty over key assets
Current corruption
Inappropriate political support
Uncertainty over licenses
Links to organized crime
Involved in money
laundering
Copyright 2011, Femvestor, Inc.
+Outcome of IDD is a Report that will contain these 4 items
Document individual phases to
investigation
Summarize Findings
Specify Area of
Uncertainty
State consequence
s from the findings
Copyright 2011, Femvestor, Inc.
+Steps to Keeping In depth IDD Affordable
• CV• Interview
Gather Info
from TP
• Accuracy• Hidden Facts
Check Public
Domain
• Associations• Hidden Facts
Field Work if Needed
• Summary of Findings
• Potential Consequences to Company
Report
+Gather Information from Third Party
Do you or a member of your family have companies that are affiliated with this one?
What boards are you seating in? What companies do you own? Who are your friends in the government? What is your relation to the government? Is there any information that I need to know that can
compromise our joint-venture or M&E? Who are your friends? What are you invested in? Please provide us with your executives, and board
members CV’s
+Check Public Domain
Industry InformationNews, Press
Releases, Blogs
Subscription Databases
Public Records
Open Sources
+Industry Information Pin-points to Issues Beyond TD Control
Government Regulations
Health of the IndustryFuture Growth
Local Economic EffectGlobal Economic Effect
Copyright 2011, Femvestor, Inc.
+Public Records
Third
Party
Ownership
LawsuitsInsolvency
Copyright 2011, Femvestor, Inc.
+News, Press Releases, and Blogs Can also Help Evaluate Third Party
Third Party
Interest
Reputation
Activities
Association
Track Recor
d
Motives
Copyright 2011, Femvestor, Inc.
+Subscription Databases
Third
Party
Affiliates
Joint-Ventures
Competition
Copyright 2011, Femvestor, Inc.
+Field Work If Needed
Question neighbors, co-workers to evaluate values and work ethic of TP
Insure no organized crime connection
Gather facts that are in the private domain
Copyright 2011, Femvestor, Inc.
