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Due Diligence Assessment Guide


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The Due Diligence Assessment Guide is a useful tool to ensure that you obtain all of the relevant information required from a prospective business partner prior to contract signing. Doing effective due diligence may be the most important business-related activity you will perform for your company.

Solution Components

The Due Diligence Assessment Guide, Includes:
- A 30-page User's manual that includes:
- An overview regarding why due diligence is important from the vice president of finance and CFO of The Johns Hopkins Health System
- Detailed guidance on conducting an effective financial due diligence
- Detailed guidance on conducting an effective legal due diligence
- A guideline for how to assess the due diligence information you gather.

Abstract

The Due Diligence Assessment Guide is a useful tool to ensure that you obtain all of the relevant information required from a prospective business partner prior to contract signing. Doing effective due diligence may be the most important business-related activity you will perform for your company. For every prospective Johns Hopkins business venture, we perform due diligence to thoroughly investigate and then evaluate all relevant aspects of the past, present, and the future (as best we can know it) of the people and firms with whom we propose to do business.

Once you determine that you want to move forward with them, formal due diligence is to confirm that your proposed business contacts are who they say they are and, perhaps more importantly, determine if their business or its practices or its people present something that would kill the deal such as financial, legal or practice improprieties or a misrepresentation of their capabilities or capacity. You also need to ensure that doing business together will not present a conflict of interest or if it does, how to manage that conflict.

This comprehensive guide is easily adapted to your particular institution and the scope of the proposed relationships.

Objectives

How are the components of the Due Diligence Assessment Guide used?
Detailed guideline for how to maximize a due diligence process and how to assess the results.

What problems or objectives does this Solution address?
Many organizations either do not conduct due diligence prior to entering into a business relationship or when they do, they don't always gather all the relevant information to guide their decision making.

How was the Solution developed?
Developed by the Financial Analysis Unit at The Johns Hopkins Health System to standardize a substantive due diligence process that could be adapted to a wide range of business opportunities.

Implementation

What does it take to implement? Maintain?
Determination and support to develop a comprehensive investigation.

Were there any organizational considerations?
Qualified staff members to conduct due diligence and support from finance and legal divisions.


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