Notes for Preparing Kick-off Meeting for Due Diligence of Sizable Deal

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These notes are hardware only and effective implementation requires flexibility and adequate
software & quality of individual.
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The purpose of a kick-off meeting for the due diligence process is to convey the information
of the following to sponsors' project team members and its advisers :
1. Who are the participants involved in the process of the deal?
. seller and seller's advisers
. project sponsors (i.e. potential buyer)
. sponsors' project team (leader, deputy leader or co-leader, and other team members
responsible for various disciplines)
. sponsors' advisers (financial, legal, tax & accounting, technical, and others if any)
. potential competitors
. potential financing banks
2. Sponsors' organizational structure, decision making process and communication channel
2.1 Organization structure
. 3 levels structure
. sponsors, i.e. potential buyer
. investment/steering committee - 2 representatives from each sponsor
. project team - a team of 4-6 members managing the due diligence exercise and advisers
according to directives from investment/steering committee
2.2 Decision making process
. investment/steering committee
- source of authority and key directives/strategies
- delegate authority to project team leader
. project team leader
- report to investment/steering committee
- supervise the project team and advisers
. project team members
- supervise and directly dialog with the advisers of various disciplines/work
2.3 Communication channel (internal and external)
. full contact list for circulation
. team structure
- indicate direct dialog/relationship among relevant team members and advisers
. line of communication
- ensure a transparent environment for an efficient communication among project team and
all advisers
. direct communication among advisers
- encourage direct dialog among advisers with project team kept in the loop
3. Background of sponsors and the deal, i.e. assets/business
. financial adviser to prepare
4 Project key milestone schedule and timetable
4.1 project key milestone schedule
. highlight key activities for quick reference
4.2 timetable
. a quot;5-6 weeksquot; timetable with detailed essential activities to be followed throughout the
process
5. Materiality level & risk register template for interim dd reporting
5.1 Materiality level
. reasonably set to reduce unnecessary due diligence work
5.2 Risk register template
. make use of Deloitte's format for the purpose
6. Upadtes of market intelligence
. competitors,
. financing bank
. others
Notes:
1. financial adviser can consolidate all information into a presentation for the kick-off
meeting.
2. a kick-off meeting is essential to a newly formed advisers group
3. project team should prepare the following information
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. team structure and communication channel
. sponsors' contact list
. project schedule and timetable
. materiality level
. risk register template
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