The goal of Keiretsu Forum’s (K4) Due Diligence (DD) process is to provide K4 members with the structure needed to make informed decisions about investments in a given company.
Keiretsu Forum facilitates a five stage DD process with the goal of researching potential investment opportunities.
Due Diligence may raise red flags which have the potential to terminate the process. It then becomes the responsibility of the entrepreneur to bring the report to fruition in whatever capacity they choose. The following may be considered red flags:
- Insufficient or waning interest in the company
- DD Leader is unidentified
- Risks of investments are too high
In these terminal cases, the Team Lead or DD Director informs the company and reviews the process to close the loop.
A typical DD process is between 4 to 12 weeks. Factors that may affect the timeline are:
- DD Team Recruitment
- Entrepreneur Participation
- Key Questions
- Deep Dive
- Reports Concluded and Team Soft Circle
- Continued Membership Engagement