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Due Diligence Engagement Letter
1. Letterhead and Date: Professional firm's letterhead, including contact details and date of the letter
2. Recipient Details: Full name and address of the client company and specific contact person
3. Subject Line: Clear identification of the document as a Due Diligence Engagement Letter and the target company/transaction
4. Introduction: Opening paragraph identifying the parties and confirming the engagement request
5. Scope of Services: Detailed description of the due diligence services to be provided, including areas of investigation
6. Timeline and Deliverables: Expected duration of the engagement and format/nature of deliverables
7. Fees and Expenses: Fee structure, billing arrangements, and treatment of expenses
8. Team Structure: Key team members and their roles in the engagement
9. Confidentiality: Confidentiality obligations regarding the engagement and findings
10. Liability and Limitations: Professional liability terms and any limitations of liability
11. Client Responsibilities: Expected cooperation and information provision from the client
12. Closing and Signatures: Formal closing, signature blocks, and acceptance provisions
1. Conflict Checks: Section addressing potential conflicts of interest, used when there are multiple parties involved or potential conflict situations
2. Third Party Access: Terms governing access to due diligence findings by third parties, used when other parties may need access to the results
3. Document Retention: Specific terms about retention of work papers and documents, used for complex engagements or when required by regulations
4. Insurance Coverage: Details of professional insurance coverage, included when specifically requested by client or for high-risk engagements
5. Termination Provisions: Detailed termination clauses, included for longer-term or complex engagements
6. Use of External Experts: Terms governing the engagement of external specialists, included when specific expertise might be needed
7. Data Protection Specifics: Detailed GDPR compliance provisions, included when significant personal data processing is involved
1. Schedule 1: Scope of Work: Detailed breakdown of due diligence areas and specific items to be reviewed
2. Schedule 2: Fee Schedule: Detailed fee structure, including hourly rates, estimates, and payment terms
3. Schedule 3: Team Structure: Detailed organization chart and CVs of key team members
4. Schedule 4: Timeline: Detailed project timeline with key milestones and deliverable dates
5. Schedule 5: Information Requirements: List of documents and information required from the client
6. Appendix A: Standard Terms of Business: Firm's standard terms and conditions
7. Appendix B: Document Request List: Comprehensive list of documents required for the due diligence
8. Appendix C: Reporting Template: Sample format of reports and updates to be provided
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