Best Investment Practices: Responsible Investing in Private Businesses

Best Investment Practices: Responsible Investing in Private Businesses

ရင်းနှီးမြှုပ်နှံမှု ပြုလုပ်ရန်အတွက် အကောင်းဆုံးသော လုပ်ထုံးလုပ်နည်းများ

~~ Essential Due Diligence on a Target Business ~~

သင်စိတ်၀င်စားသော ပုဂ္ဂလိက လုပ်ငန်းအပေါ် လိုအပ်သည့် စုံစမ်းစစ်ဆေးမှုများလုပ်ရန် ဘာတွေစဥ်းစားသင့်သလဲ

Opportunities exist even in obstacle-prone environments, according to a remark by a well-known investor. This applies to almost all markets facing today's global challenges.

As private capital investors continue to navigate their private equity journey, which plays a pivotal role in a country's push for economic development, it is of utmost importance that Due Diligence is practised on their targeted investments before sealing a deal.

With professional money managers responsible for making equity investments, investing in private equity contributes to the long-term value creation of the companies. This, all while considering responsible and ethical investment practices, such as Environmental, Social & Governance (ESG) requirements thatcontribute positively to society and the environment.

Conducting Due Diligence is essential for investors, allowing them to understand the true nature, value and risk of the investment and the potential for future growth.

Due Diligence is essential not only to making equity investments but for business partnerships as it helps assess important aspects of a potential partner. A successful and sustainable partnership is significantly dependent upon the conduct of adequate due diligence practices.

This training, delivered in partnership with MPE&VCA's member firms, SCM Legal and Delta Capital, is designed to help you to understand the essentials of investigation and analysis when determining if a target company meets an investor's funding criteria.

Led by practitioners focused on the private equity and investment management space in Myanmar, the training on due diligence will cover three focus areas of diligence:

● Legal Due Diligence

● Environmental, Social & Governance (ESG) Due Diligence, and

● Commercial Due Diligence

This class will build on a case study about a consumer product operation in Myanmar.

The class will also look into the strategic, ethical and sustainable dimensions of the due diligence practice of investing in private companies in the Myanmar context.

Day 1 - Legal Due Diligence

ဥပဒေကျင့်ထုံးများကို လေ့လာသုံးသပ်အကဲဖြတ်ခြင်း

December 4, 2024 (Wed)

This day of the course will delve into the importance and intricacies of managing a due diligence process from a legal perspective.

The course will cover essential strategies to ensure thorough and effective due diligence processes, highlighting key areas such as legal compliance, and risk assessment. Join this session to learn how to identify potential red flags, streamline your due diligence workflow, and make informed investment decisions.

The course will be led by Stefan Chapman, Founding Partner at SCM Legal, a leading Myanmar-based independent law firm advising businesses, industry and government on many legal practices including business law and investment fund set-up.

This training will delve into areas such as corporate structure, contracts and agreements, litigations and compliance, among others.

— Assessing implications on ownership

— Corporate documentation and analysis

— Family business' compliance with law and regulation

— Analysing Contracts and Agreements: Purchase Agreement, Shareholders' Agreement, Contractual Obligations

— Verifying Intellectual Property (IP) ownership and validity

— Identifying risks in deal terms in a term sheet

Instructor

Stefan Chapman,

Founding Partner, SCM Legal

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Day 2 - Environmental, Social & Governance (ESG) Due Diligence

ESG လုပ်ငန်းများကို လေ့လာသုံးသပ်စိစစ်ခြင်း

December 11 (Wed)

The second day of the course will help you understand the analysis of the target investment's governance structure, ethical practices, environmental impact, and commitment to diversity and inclusion.

This day of the course will provide a comprehensive understanding of fundamental ESG standards, principles, and best practices used widely in ESG Due Diligence. It will cover the assessment and management of both internal and external ESG risks and impacts associated with target investments, including governance structures and ethical practices. Additionally, the course will explore relevant ESG topics prioritised globally, such as climate change, waste management, diversity, and inclusion. Attendees will have the opportunity to explore how these issues may be pertinent to businesses in Myanmar.

The course will be led by Chaw Mon Tun, Legal and ESG Director at Delta Capital IM Ltd, an emerging market asset manager with USD120M in assets under management. Chaw is responsible for ensuring that investments made by Delta Capital meet international ESG standards across the entire investment process, from pre-screening, due diligence, and investment to portfolio management and divestment.

Chaw will guide you through the essentials of due diligence practices from an ESG angle, comprising ESG principles, systems and processes, among others.

This training will look into the following areas:

1. Exploring ESG standards, principles, and industry benchmarks.

2. Assessing both internal and external ESG risks of the target company and evaluating the maturity of its ESG systems and processes.

3. Integrating ESG strategy into long-term business plan & mission, developing mitigation strategies, and monitoring ESG policies & procedures.

4. Analysing global ESG trends such as gender balance, corporate governance, supply-chain sustainability.

Instructor

Chaw Mon Tun,

Legal and ESG Director, Delta Capital IM Ltd

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Day 3 - Commercial Due Diligence

ကုန်သွယ်မှုဆိုင်ရာ အခြေအနေများကို လေ့လာသုံးသပ်စိစစ်ခြင်း

January 2025

Further details for this session will be provided shortly

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The class is part of MPE&VCA's The Private Investment Trail series of discussions and lectures. The series will cover topics from fund structuring to decision-making for capital deployment and ways to best perform tasks in private investment management.