STEP 5: Prepare Final Confidential Information Memorandum (Final CIM

the business. Evaluate days of sales outstanding (DSO), margins, inventory, fixed assets, controls, risks, etc. 3. SGS COO complete the Admin & Operations tab. Findings should be documented in the correct row of the Admin & Operations tab. Major issues or red flags should be immediately raised to the RM. a. Review the detailed STEP 3 below for information on how to conduct management interviews. b. Be sure to look at copies of the entrepreneur’s degrees and other certifications and evaluate any leverage points should you later run into relational challenges. 4. SGS CFO should review the findings from the Commercial due diligence (DD Light) conducted earlier in the Active Pipeline stage and determine the additional information needed to raise confidence of the financial assumptions and model, and to address any concerns raised by the IC. SGS CFO complete the Commercial tab. Findings should be documented in the correct row of the Commercial tab. Major issues or red flags should be immediately raised to the RM. 5. RM, SGS COO and Legal complete the ESG and Gender-Smart checklists. RM reviews the company’s responses to the gender equality, environmental, health and safety questions. If the company has responded affirmatively to any of these questions, raise this to the attention of the Dir. of AM to discuss whether and what additional diligence will be required. Depending on the severity of the issue, external gender and/or environmental consultants may be necessary. 6. Based on findings from Step 5 above, RM, SGS COO and Legal complete a gendersmart assessment using the SEAF Gender Equality Scorecard© and accompanying Calculation Sheet, which will result in a robust gender-smart baseline “score” from which the SGS team will re-evaluate the company after the first 180 days, post-investment has passed. 7. RM ensures all outstanding items raised by the External IC and the IIC have been addressed for the document review.

Standards:

● The RM must follow the folder structure, file naming protocols, and be sure to regularly clean up folders to make sure all notes from meetings with management and other stakeholders are being documented and stored. The RM must pay close attention to version control and regularly clean up folders to ensure the latest version of the files are clearly marked. This will save time when the company moves into due diligence. If done well, due diligence will be relatively easy to move into because all of the files and information gather to that point will be easy to find and reference. ● Engage the “experts” on the team to lead each piece of due diligence. That is, the local legal counsel should lead the legal review, the accounting and finance team will lead the financial review and the SGS team and deal lead will conduct the commercial and operational review.