User talk:Liestarmaude63688

A business which wants to attract foreign investments should present a business plan. But a company plan is the equivalent of a call card. The introduction is essential - but, once the international investor has expressed interest, an additional, more tedious, more onerous and more serious process commences: Research.

"Due Diligence" is just a legal expression (borrowed from the securities market). This means, primarily, to make sure that most the facts concerning the organization can be found and have now been independently confirmed. In certain respects, it is nearly the same as an audit. All the files of the firm are assembled and examined, the management is questioned and a group of economic experts, lawyers and accountants descends on the firm to analyze it.

First Rule:

Due diligence coordinator must be appointed ONE by the firm. This individual interfaces with all outside homework teams. He gathers all the materials requested and oversees all the activities which can make up the due diligence process.

The firm should have ONE VOICE. Only 1 person shows the company, answers issues, makes shows and acts as a manager when the DD groups want to interview people linked to the firm.

Second Rule:

Brief your workers. Give the big picture to them. If the investor is available in why is the company increasing funds, who are the people, how will the future of the firm (and their individual future) look. Both employees and management must understand that it is a top priority. They should be told to not lie. They need to know the DD manager and their spokesman in the DD approach.

The DD is a process that is more structured than the preparation of a Company Plan. It's limited both over time and in subjects: Legal, Financial, Technical, Marketing, Controls.

The Marketing Plan

Should are the following elements:

a.. A brief history of the company (showing its course performance and growth).

b.. Points about the political, legal (licences) and competitive environment.

c.. A vision of the company later on.

d.. Services and products and services and their uses.

e.. Comparison of the firm's goods and services to those of the competitors.

f.. Warranties, guarantees and after-sales service.

g.. Development of new products or services.

h.. A general overview of the market and market segmentation.

i.. Is the market increasing or falling (the trend: past and future).

j.. What customer needs do the products / services fulfill.

k.. Which markets segments do we pay attention to and why.

l.. What facets are important in the customer's choice to buy (or not to buy).

m.. A list of the strong competitors and a short description of every.

n.. The strengths and weaknesses of the competitors in accordance with the organization.

o.. Missing information regarding the consumers, the markets and the competitors.

p.. Prepared general market trends.

q.. A sales forecast by product group.

r.. The pricing strategy (how is pricing decided).

s.. Campaign of the sales of the merchandise (including a description of the sales pressure, sales-related incentives, sales targets via, education of the sales personnel, promotions, dealerships, telemarketing and sales service). Connect a chart of the buying process from the time that the customer is approached by the sales staff until he buys the product.

t.. Advertising and marketing campaigns (including cost estimates) - broken by industry and by media.

u.. Distribution of these products.

v.. A flow chart describing the delivery of instructions, invoicing, shipping.

w.. Consumer after-sales support (hotline, service, preservation, problems, improvements, etc.).

x.. Customer loyalty (example: churn rate and how is it monitored and controlled).

Appropriate Details

a.. Complete name of the company.

b.. Control of the firm.

c.. Judge registration papers.

d.. Copies of all practices of the Board of Directors and the Overall Assembly of Shareholders.

e.. Signatory rights supported by the appropriate decisions.

f.. The constitution (law) of the other development papers and firm.

g.. Copies of licences granted to the organization.

h.. A legal opinion concerning the above licences.

i.. A list of lawsuit that were filed against the firm and that the firm filed against third parties (lawsuit) plus a list of conflicts which are likely to reach the courts.

j.. Legal views regarding the possible outcomes of all the lawsuits and disputes including their possible impact on the company.

Economic Research

Last 36 months income statements of the firm or of elements of the firm, if the firm may be the result of a merger. The claims need certainly to include:

a.. Stability Sheets;

b.. Revenue Statements;

c.. Cash Flow statements;

d.. Review studies (preferably done according to the International Accounting Standards, or, if the company is trying to raise money in the USA, relative to FASB );

e.. Cashflow Projections and the assumptions underlying them.

Settings

a.. Accounting systems used;

b.. Solutions to cost products and services;

c.. Cost terms, collections of debts and aging of receivables;

d.. Introduction of international sales standards;

e.. Track of sales;

f.. Monitoring of instructions and shipments;

g.. Keeping of records, completing, archives;

h.. Price sales system;

i.. Budgeting and budget tracking and controls;

j.. Central audits (frequency and methods );

k.. Additional audits (frequency and methods );

l.. The banks that the company is working with: record, sources, balances.

Technological Program

a.. Description of manufacturing processes (electronics, computer software, communications, other );

b.. Importance of know-how, technological transfer and licensing required;

c.. Manufacturers of equipment, software, services (including offers );

d.. Manpower (skilled and unskilled );

e.. Infrastructure (energy, water, etc. );

f.. Transportation and communications (example: satellites, lines, devices, transmitters );

g.. Fresh materials: options, price and quality;

h.. Relations with suppliers and service industries;

i.. Significance restrictions or licensing (where appropriate );

j.. Internet sites, complex specification;

k.. Environmental issues and how they are addressed;

l.. Rents, particular arrangements;

m.. Integration of new functions into existing ones (standards, etc.).

A due diligence could be the key to an ultimate investment. It is a process much important and more serious compared to preparation of the Company Plan.