Consider legal compliance (current and reasonably foreseeable regulations) and non-regulatory risks or opportunities.
Apply a pre-defined materiality threshold to focus due diligence and findings (e.g. financial implications above a defined limit, significant reputational issues, potential for business interruption, legal compliance issues).
Consider international standards, as appropriate (e.g. IFC Performance Standards, Equator Principles) or good practice resources (e.g. Invest Europe GP Due Diligence Questionnaire).
Ensure appropriate coverage of company operations, with site visits to higher risk operations.
Ensure that you identify and assess the following factors: potential liabilities, current/future capital or operational expenditure costs, need for additional human resources and management time inputs, previous and potential ESG reputational issues.
Understand the steps required to address material issues post-acquisition, and the relative priority of each step.
Factor in ESG opportunities (e.g. new markets or income streams, eco-efficiencies, circular economy).
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