COURSE dates

  • Dates: 14 Oct 2019 - 15 Oct 2019

    Speaker: Kevin Atkins

    Venue: Northampton

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Due Diligence for Successful Contracts

First Delegate: £730 +VAT

Second Delegate and MOD: £655 +VAT

Duration: 2 days

course description

Why conduct Due Diligence and where is the value to the organisation?

Due Diligence or DD is the process of evaluating a business situation or new business opportunity from all aspects before making what can be a substantial financial investment or business critical decision.

Due diligence is performed to provide confidence to both parties entering into agreements that all aspects of the deal are well understood. It protects both parties by uncovering potential liabilities and risks, to ensure nothing is hidden. DD done correctly focusses on specific business functions such as technology, processes, service delivery and operations, areas specific to the business sector.

The DD is not a tick-box exercise, but a structured and methodical process designed to remove and mitigate risks which could have a material effect on the business finances, or reputation.

Unfortunately, history is littered with examples where DD was not successfully undertaken with the result that companies and suppliers of services have ended up on the front pages of newspapers for the wrong reasons. Many these being associated with IT and public sector cost overruns.

This course is intended to teach delegates how to take a focussed journey through the entire bid stage and into transition and project initiation by introducing DD as an integral part of the bid process. Delegates will develop skills and use a DD toolset of practical methods to help holistically review and analyse the bid from a DD perspective. The processes used are specifically designed to help the delegate to very quickly identify and understand to key issues and risks within the bid, then, more importantly create the necessary focus to understand how risks might be mitigated to manageable levels.

course overview

What does the Due Diligence process involve?

A key factor for successful bidding and for conducting DD, is to create a winning team. As a minimum, this should include senior specialists from both the supplier and buyer organisations, including principal partners. The dream team will often be made up of the key Sales, Solution/Technology, Delivery, Operations, Finance and Legal/Commercial specialists who have the expertise to:

  • Review all critical business records, design documentation and documents.
  • Conduct workshops at the business location, talking to Subject Matter Experts, Managers and Executives.
  • Review how it conducts business (electronic B2B etc).
  • Review future growth plans, condition of facilities, volumes, equipment, furniture, and fixtures to verify that they are recorded on the asset register and whether they are part of the future solution.
  • Review all documents which might incur liability for the company, including sales agreements, purchase agreements, legacy assets, licences, 3rd party contracts etc.
  • Examine documents relating to any ongoing, or potential lawsuits, and recent litigation that has concluded.
  • Review all process and design documents, e.g. IT networks etc.
  • Review any risks with the solution proposed, proven, cutting edge/not tested and the ability to deliver.
  • Review any risks with the team resources such as knowledge transfer, TUPE costs, security clearances.
  • Review any needs for large capital investments, or legacy risks with old equipment and processes.

HMS queen ElizabethHealth Warning – It is most important that the due diligence process takes a helicopter view of the situation. The DD lead will often have to put on many hats to gain a non-bias perspective and not be driven by sales pressure, or the need to complete a deal at any cost. DD must constantly look for any discrepancies between what is reported and what is actually happening, both internally and externally. Ask lots of questions; if you don’t get satisfactory answers, ask why and keep digging. Remember – if it doesn’t seem right, it probably isn’t.

This DD course has been developed using proven processes and tools that have been successfully deployed on many major bids spanning the defence, aerospace, retail, banking, transportation and power industries. In all cases, the DD principals remain the same, capturing data from both the client and supplier teams to determine the key risks and assumptions within each part of the business. These are progressively analysed to drive a series of templated reports that help provide the management information required to conduct further DD information requests. They also form the basis for the agenda for creating prioritised deep dive discussion workshops aimed at closing the key risks and solution gaps to provide the necessary decision making confidence.

What subjects are included in the due diligence process?

Although the subjects involved in the due diligence may change based on the situation or market sector, most of the time the due diligence process will follow a standard path, which can be tailored to suit the bid or clients’ timeframe. This is important because a non-flexible DD process, could kill the deal before you start.

This DD course will take you through each DD process, which can be tailored using a series of templates that help speed the DD process, but more importantly allow the DD or Team specialist to make decisions to achieve and shape the solution approach. The added value of this approach also provides progressive outputs and key management information for Executive review.

Who Should Attend?

The course is aimed at corporate Executives and Subject Matter Experts spanning the full range of Defence and Commercial industry, who are involved in, or responsible for new business opportunity bids requiring due diligence.

  • Managing Directors and General Managers
  • Commercial Directors and Managers
  • Finance Managers
  • HR Managers
  • Operations Directors and Managers
  • IT Directors and Managers
  • Sales Directors and managers
  • Bid directors and bid managers
  • Programme/Transition and Transformation Directors and managers
  • Solution Executives and project Directors and Subject Matter Experts

course outline

This 2-day course provides real insight into the principals of conducting successful bidding and DD, and how these two distinct areas interlock to help shape and de-risk the bidding and delivery process. The following subject areas will be covered to provide an engaging presentation with many practical examples to help bring the subject to life.

Training roomDelegates will learn how to:

  • Identify the main risks in a bid process
  • Focus due diligence effort on critical areas
  • Develop assumptions and dependencies
  • Assign appropriate weight and priority to each main area for investigation
  • Assign financial values to risk
  • Set up and run client/Subject Matter Expert workshops and interviews
  • Collect the right information for solution and service delivery, contract negotiation and for operational take-on of service
  • Recognise the most common risks and issues in each of the main functional areas and how to mitigate them
  • How to develop appropriate legal/contractual clauses
  • How to prepare Client and Executive reports using the DD tools
  • Prepare a DD Plan

Bidding and Due Diligence Overview

  • Understand the key elements within the Bidding and Due Diligence process
  • Understand the sales and marketing process
  • Understand how to build a competitive proposition within a complex environment
  • Understand what DD is and when to apply it
  • Understand the DD Toolset and how to use them
  • Aligning priorities to the main risks and developing mitigation strategies
  • How to build the winning team
  • Understand how to obtain data – published and unpublished

Market Due Diligence

  • Market growth and developments
  • Technology — e.g IT
  • Competitors
  • Management team
  • Legal
  • Environmental due diligence

Financial Due Diligence

  • Integrated financial model
  • Due diligence Risk impacts
  • Tax

Human Resources

  • Understanding the regulatory environment (international context)
  • Pay and benefits
  • Industrial relations
  • Skills base
  • Knowledge transfer
  • What is culture and how do we evaluate it
  • Pension rights and TUPE

The International Perspective

  • Added complexity and risk of foreign country deals
  • Complexity of multi-country operations
  • Tax
  • Offshoring
  • Language

Reporting Due Diligence Findings

  • Structured due diligence report
  • Client briefing report
  • Executive reports
  • Outstanding Issues/risks and the politics of negative findings

trainee testimonials

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STS Defence

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“Excellent tutor, very relaxed and informative. Guided the course very well.”

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“I would like to thank you for your professionalism, experience and patience.”

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