STEP 6: Obtain Final IIC & IC Approval

● Raise any significant issues that could have the potential to be “deal killers” immediately upon identifying them. Do not sit on this information, as there is no point in continuing to expend resources on DD if there are significant problems that could prevent the deal from advancing. ● Be in constant communication with the company during the DD review - if documents or answers the company provided raise more questions, ask for follow up information.

Keep asking questions until you are satisfied you have all the documentation or information you need. Do not leave any stone unturned.

STEP 3: CONDUCT MANAGEMENT INTERVIEWS

This should be led by the SGS team and is part of the Admin and Operations due diligence checklist section. We pull out management interviews as a separate “step” (i.e., they should be conducted as a part of STEP 2 above) because there are important standards that should be followed. It is important that the SGS COO lead these interviews, given [INV./FUND MANAGER NAME]’s gender-smart strategy, wherein during for the first three years, the management team reports to SGS. These interviews allow SGS to evaluate the team and use the inputs from the management team to refine the First 180-Days Statement of Work and the First 180-Days Project Plan.

Outcomes:

● To assess the company’s current management team and identify any gaps, particularly in the area of gender equality. ● To use the assessment to build a gender-smart hiring plan, update the growth plan, and develop the First 180-Days Statement of Work and the First 180-Days Project Plan. ● Management plan and compensation model.

Process:

1. SGS and RM prepare the management and employee interview guide. a. For management – Use the Management Interview Guide. 2. RM works with Company DD POC to schedule interviews. 3. SGS and RM interview members of the company’s management team. a. SGS and RM interview six to twelve male and female employees. Ensure an even balance between female and male employees as much as possible. b. SGS and RM must take verbatim meeting notes with their computer. 4. RM and SGS prepares a summary report of the interviews: a. Themes of the current state, future state, challenges and barriers, case for change and initiatives that were gathered from the management interviews. Theming involves a rigorous review of the raw meeting notes, organizing the

notes under heading “themes”, and making sure there is enough data points to validate the theme (three to five people have mentioned something like this). 5. SGS develops enhanced management plan and compensation model: a. The proposed org structure and management team with vacancies. b. Proposed performance plan including gender-equal, performance-based pay, incentives and benefits. 6. SGS presents findings and management plan to IIC for approval. Incorporate any comments or feedback from IIC. 7. Once IIC approval is received, update the First 180-Days Project Plan and begin developing job descriptions and recruitment plan in collaboration with the firm’s / fund’s HR department.

Standards:

● The RM and team must spend time at the company during this step. Request a desk at the company. Do not be afraid to speak with members of the team. Speak with members of the management, finance and operations teams. Ensure that you are obtaining a balanced perspective from both female and male team members, and positions in the company.

● RM must use a running meeting notes file to capture discussions with the promoter and management. A common mistake is that these notes get scattered in various places and in emails. As a result, when and if various team members ask questions to the promoter that they believe they have already answered in prior discussions, the promoters can get frustrated and create tension with [INV./FUND MANAGER NAME]. It also damages [INV./FUND MANAGER NAME]’s trust brand. Eventually, [INV./FUND MANAGER

NAME] will use a CRM, which will help to organize and capture information as the deal moves through the active pipeline process. Until then, use a single running meeting notes with the promoter to capture all discussions.

● All interviews must be documented in verbatim notes.

● Employees should be assured that nothing will be attributed to them unless they specifically want it to be. And that interview notes are confidential and only used by the [INV./FUND MANAGER NAME] team.

● All management team members should be interviewed.

● Management interviews should follow the gameboard framework: current state, future state, case for change, barriers, strategies. During the current state discussion, challenges should be explored, and root causes sought.