DUE DILLIGENCE PROCESS

The objective of the due diligence (DD) process is to peel back the glossy cover and attractive proposition that the marketing materials of each product portray and delve into what really lies beneath.

Does the provider and their product really offer what they appear to?

What are the inherent dangers and the likelihood of something going wrong?

How would they cope under adverse market driven conditions?

How realistic are the returns on offer?

It is not only essential to look at the product but also at the product provider.

Do they have a good pedigree?

Are the officers of the company sufficiently experienced and qualified?

What is the track record of the company and how many products have concluded successfully?

BCG Alternatives (BCGA) has created a due diligence panel comprising of experienced financial and compliance professionals who regularly meet to evaluate the product providers and their latest innovative offerings.

A sample of a completed DD questionnaire and summary report issued by the DD panel can be found below. The Process itself consists of two main parts:

1: The Company and Investment due diligence

2: The Operational and Technical due diligence

The questions we ask and information we require to substantiate the responses cover such things as

COMPANY AND INVESTMENT
DUE DILIGENCE

  1. Business Information
  2. Institutional Information
  3. Company Data
  4. Company Revenues
  5. General Project Information
  6. Project Revenues & Returns
  7. Operational Information
  8. Operations Management
  9. Economic Analysis & Research
  10. Resource Management

OPERATIONAL AND TECHNICAL
DUE DILIGENCE

  1. Risk Management
  2. Credit Risk
  3. Counterparty Risk
  4. Price Risk
  5. Liquidity Risk
  6. Operational Risk
  7. Operational Information
  8. Compliance & Internal Auditing
  9. Judicial & Legal Issues
DOWNLOAD SAMPLE DUE DILIGENCE REPORT

GET A FREE FINANCIAL CONSULTATION