Course Outline: Due Diligence Before Investing

1. Introduction to Due Diligence

• Definition and importance of due diligence in the investment process.
• Key principles of thorough research and risk assessment.
• Common pitfalls of skipping due diligence.

2. Types of Due Diligence

• Financial Due Diligence:
  • Evaluating financial statements and ratios.
  • Identifying red flags in financial records.
• Operational Due Diligence:
  • Assessing the company’s operations and supply chain.
  • Understanding business models and management efficiency.
• Legal Due Diligence:
  • Verifying compliance with legal and regulatory standards.
  • Reviewing contracts, licenses, and pending litigation.
• Market Due Diligence:
  • Analyzing market position, competition, and growth potential.
  • Evaluating industry trends and customer base.

3. Steps in the Due Diligence Process

• Gathering and analyzing relevant data.
• Structuring and organizing findings into actionable insights.
• Conducting interviews with stakeholders and management.
• Preparing a comprehensive due diligence checklist.

4. Tools and Techniques for Effective Due Diligence

• Using financial analysis tools and software.
• Leveraging market research databases and tools.
• Importance of SWOT analysis in decision-making.

5. Case Studies and Real-World Applications

• Analysis of successful investments backed by robust due diligence.
• Examples of failures due to lack of or inadequate due diligence.
• Interactive group activity: Conducting a mock due diligence on a sample company.

6. Common Challenges and How to Overcome Them

• Managing incomplete or inaccurate data.
• Mitigating bias in analysis.
• Handling time constraints without compromising thoroughness.

7. Finalizing Investment Decisions

• Interpreting due diligence findings to make informed decisions.
• Balancing risk and reward based on the analysis.
• Communicating due diligence results to stakeholders.

8. Wrap-Up and Best Practices

• Key takeaways for conducting effective due diligence.
• Building a mindset of disciplined and informed investing.
• Q&A and reflection.

Objectives

1. To understand the concept and significance of due diligence in investment decisions.
2. To identify and evaluate critical areas of analysis during the due diligence process.
3. To equip participants with tools and techniques for effective data gathering and risk assessment.
4. To develop skills in interpreting findings and integrating them into investment strategies.
5. To highlight common challenges in due diligence and strategies to overcome them.

Course Outcomes (Hasil Pembelajaran Kursus)

1. Participants will be able to explain the importance and key elements of due diligence in investing.
2. Participants will be skilled in analyzing financial, operational, legal, and market data.
3. Participants will be able to identify and mitigate risks effectively through structured due diligence.
4. Participants will gain hands-on experience in applying due diligence techniques to real-world scenarios.
5. Participants will be equipped to make well-informed investment decisions and present findings to stakeholders confidently.