The Art and Science of Leading Due Diligence. Session 1. Catherine Chiu and Steven Lamont

1. The Art and Science of Leading Due Diligence Catherine Chiu and Steve Lamont Keiretsu Forum Northern California

5. Due Diligence is Art and Science

8. Weak Teams “Unravel”

10. Due Diligence Process Phase Activities Duration/Timing 1 Initial conference call or meeting/ Q&A Week 1 2 Team formation and setting communications standards Week 1 - 2 3 Site visit(s); Company & reference calls; Regular internal DD team calls Weeks 1 - 5 4 DD team reports prepared and posted Weeks 4- 7 5 Consolidated report posted, Soft circle interest determined Weeks 5 - 8 6 Deal negotiations; Term sheets distributed; Hard circle commitments made Weeks 6 - 12 7 Funds deposited; Process review with company Weeks 7 - 14

11. Due Diligence Process Phase Activities Duration/Timing 1 Initial conference call or meeting/ Q&A Week 1 2 Team formation and setting communications standards Week 1 - 2 3 Site visit(s); Company & reference calls; Regular internal DD team calls Weeks 1 - 5 4 DD team reports prepared and posted Weeks 4- 7 5 Consolidated report posted, Soft circle interest determined Weeks 5 - 8 6 Deal negotiations; Term sheets distributed; Hard circle commitments made Weeks 6 - 12 7 Funds deposited; Process review with company Weeks 7 - 14

12. Due Diligence Process Phase Activities Duration/Timing 1 Initial conference call or meeting/ Q&A Week 1 2 Team formation and setting communications standards Week 1 - 2 3 Site visit(s); Company & reference calls; Regular internal DD team calls Weeks 1 - 5 4 DD team reports prepared and posted Weeks 4- 7 5 Consolidated report posted, Soft circle interest determined Weeks 5 - 8 6 Deal negotiations; Term sheets distributed; Hard circle commitments made Weeks 6 - 12 7 Funds deposited; Process review with company Weeks 7 - 14

13. Due Diligence Process Phase Activities Duration/Timing 1 Initial conference call or meeting/ Q&A Week 1 2 Team formation and setting communications standards Week 1 - 2 3 Site visit(s); Company & reference calls; Regular internal DD team calls Weeks 1 - 5 4 DD team reports prepared and posted Weeks 4- 7 5 Consolidated report posted, Soft circle interest determined Weeks 5 - 8 6 Deal negotiations; Term sheets distributed; Hard circle commitments made Weeks 6 - 12 7 Funds deposited; Process review with company Weeks 7 - 14

14. Due Diligence Process Phase Activities Duration/Timing 1 Initial conference call or meeting/ Q&A Week 1 2 Team formation and setting communications standards Week 1 - 2 3 Site visit(s); Company & reference calls; Regular internal DD team calls Weeks 1 - 5 4 DD team reports prepared and posted Weeks 4- 7 5 Consolidated report posted, Soft circle interest determined Weeks 5 - 8 6 Deal negotiations; Term sheets distributed; Hard circle commitments made Weeks 6 - 12 7 Funds deposited; Process review with company Weeks 7 - 14

15. Due Diligence Process Phase Activities Duration/Timing 1 Initial conference call or meeting/ Q&A Week 1 2 Team formation and setting communications standards Week 1 - 2 3 Site visit(s); Company & reference calls; Regular internal DD team calls Weeks 1 - 5 4 DD team reports prepared and posted Weeks 4- 7 5 Consolidated report posted, Soft circle interest determined Weeks 5 - 8 6 Deal negotiations; Term sheets distributed; Hard circle commitments made Weeks 6 - 12 7 Funds deposited; Process review with company Weeks 7 - 14

16. Due Diligence Process Phase Activities Duration/Timing 1 Initial conference call or meeting/ Q&A Week 1 2 Team formation and setting communications standards Week 1 - 2 3 Site visit(s); Company & reference calls; Regular internal DD team calls Weeks 1 - 5 4 DD team reports prepared and posted Weeks 4- 7 5 Consolidated report posted, Soft circle interest determined Weeks 5 - 8 6 Deal negotiations; Term sheets distributed; Hard circle commitments made Weeks 6 - 12 7 Funds deposited; Process review with company Weeks 7 - 14

17. Due Diligence Process “ Getting Past No” by William Ury “ Negotiating Genius” by Deepak Malhotra and Max H. Bazerman Phase Activities Duration/Timing 1 Initial conference call or meeting/ Q&A Week 1 2 Team formation and setting communications standards Week 1 - 2 3 Site visit(s); Company & reference calls; Regular internal DD team calls Weeks 1 - 5 4 DD team reports prepared and posted Weeks 4- 7 5 Consolidated report posted, Soft circle interest determined Weeks 5 - 8 6 Deal negotiations; Term sheets distributed; Hard circle commitments made Weeks 6 - 12 7 Funds deposited; Process review with company Weeks 7 - 14

18. Due Diligence Process Phase Activities Duration/Timing 1 Initial conference call or meeting/ Q&A Week 1 2 Team formation and setting communications standards Week 1 - 2 3 Site visit(s); Company & reference calls; Regular internal DD team calls Weeks 1 - 5 4 DD team reports prepared and posted Weeks 4- 7 5 Consolidated report posted, Soft circle interest determined Weeks 5 - 8 6 Deal negotiations; Term sheets distributed; Hard circle commitments made Weeks 6 - 12 7 Funds deposited; Process review with company Weeks 7 - 14

19. The Art and Science of Leading Due Diligence Catherine Chiu and Steve Lamont Keiretsu Forum Northern California