Purpose, scope and planning of due diligence

Module 01 / 5 · 65 min · Free preview

Decide what kind of due diligence a deal needs, set materiality and scope, and run the request list, data room, advisers and Q&A to a timetable.

In this module you will learn to

Explain the purpose of buy-side, vendor, lender and IPO due diligence and who performs each
Set materiality and a scope that follow the deal's key risks
Build a request list and organise a data room review
Plan the budget, advisers, timeline and Q&A process of a multi-disciplinary due diligence

Built on

Erudite Africa training module: Ethiopian Context, topic 3.d Due Diligence Mastery, Levels 1 and 2 (October 2026)
NBE directives as listed in the lessons: SBB/90/2024, SBB/92/2024, MFI/36/2023, Instruction FCPED/142/26
Ethiopian tax laws: Income Tax Proclamation No. 979/2016 as amended by No. 1395/2025, VAT Proclamation No. 1341/2024, Federal Tax Administration Proclamation No. 983/2016, Transfer Pricing Directive No. 981/2024
ESX Rulebook (December 2024)
A commercial bank's Revised Credit Procedure Manual (August 2025), unnamed
IFC Performance Standards on Environmental and Social Sustainability

Examples and companies are fictional. Bank practices are shown as typical Ethiopian practice, not as any one bank's policy. Always apply your own institution's approved policy and the current NBE directives.