RFP/BW/AP/2025/00001

Terms of Reference (TOR): Due-Diligence Consultant/consulting firm

1)      Background

AP is a global initiative of the AKDN in Central and South Asia, which follows guidance from the Aga Khan Foundation to develop more formal structures to catalyze enterprises in emerging marketing and areas where economic opportunities remain insufficient. Through patient capital and tailored business advisory to start-ups and small and growing businesses, AP complements broader employment-related programs of AKF and draws significantly on technical expertise from the Aga Khan Fund for Economic Development’s (AKFED) Industrial Promotion Services (IPS), and coordinates efforts with the AKDN’s financial institutions, the University of Central Asia and many other national partners.

AP supports innovative business ideas as part of its incubation programs. It aims to enable aspiring and existing entrepreneurs to develop effective business models, marketing and sales strategies, practical and sound financial models and forecasts of the company’s future financial performance, and design persuasive and impactful pitch decks.

2)      Program Overview

NA

3)      Program Context

These TORs are supported under the BEST4WEER project, funded by Global Affairs Canada. The activity aims to support the team in making informed investment decisions as part of the pre-financing due diligence process.

4)      About the Position

To ensure informed investment decisions, Accelerate Prosperity seeks to engage a consultant/consulting firm on a retainership model to conduct physical due diligence of selected businesses. This process will thoroughly assess business operations, financial viability, and market positioning to validate their investment potential.

5)      Scope of Work

The consultant/consulting firm will be responsible for:

1. Business Visit & Inspection: Conducting on-site visits to selected businesses as AP identifies any business.
2. Operational & Financial Due Diligence: Evaluating the business and financial model to assess feasibility, sustainability, and investment readiness.
3. Quotation Verification: Obtaining quotations from businesses for leveraged financing purposes.
4. Financial Model Updates: Making necessary updates to the financial model based on due diligence findings.
5. Documentation & Reporting: Submitting a comprehensive due diligence report in the format provided by AP.
6. Compliance & Risk Assessment: Identifying compliance risks and advising on mitigation strategies.

6)      Deliverables

The consultant/consulting firm will be expected to provide the following deliverables for each business assessed:

• Site Visit Report: Detailed findings from the physical inspection of the business.
• Due Diligence Report: Comprehensive financial, operational, and compliance assessment.
• Verified Quotations: Authentic documentation of quotations obtained from businesses for leveraged financing.
• Updated Financial Model: Revised financial projections reflecting due diligence findings.

7)      Qualifications and Experience

The consultant/consulting firm should meet the following criteria:

1. Educational Qualification: Professionals with a background in Finance, Business Administration, Economics, or related fields. A CFA, CA, ACCA, or MBA (Finance) qualification will be preferred.
2. Experience: Minimum 3 years of experience in business due diligence, financial analysis, or investment advisory services.
3. Sector Knowledge: Experience in working with startups, SMEs, and investment readiness assessments.
4. Professional Registration: Firms must be duly registered with relevant authorities and maintain an active taxpayer status with FBR.
5. Analytical & Reporting Skills: Strong expertise in conducting financial due diligence and producing in-depth reports.

8)      Contract Duration

The consultancy will follow a retainership model on a per-business basis for an initial period of 12 months, with the possibility of renewal based on performance and mutual agreement.

9)      Location

Gilgit-Baltistan and Chitral. The specific location will vary depending on the business address within Gilgit-Baltistan.

10) Tentative Timeline

12 months from the date of the contract signing. Up to 30 businesses are expected to go through the due diligence process during this period.

11) Payment terms

• Payment Structure: Payments will be made on a per-business basis, subject to the successful submission of all required deliverables for each business assessed.
• Budgeting Guidelines: The budget should be prepared on a per-business basis for up to 30 businesses, with travel costs for business visits included in the per-business cost.

12) Reporting Line

Business Sustainability and Outreach Lead, Accelerate Prosperity

13) Proposal Submission Requirements:

Interested applicants must submit the following: 

1. Technical Proposal: 

• Individual applicants should include a technical proposal and cover letter describing their previous experience, key skills, and qualifications that make them suitable for this role.
• Consulting firms should include a cover letter, technical proposal, and company profile along with team profiles describing previous experience, key skills, and qualifications that make them suitable for this role.
• Applicants are required to sign the RFP document along with annexes, and it should be submitted along with the proposal

 2. Financial Proposal: 

• The financial proposal should be submitted using the attached financial proposal format with a valid signature and stamp.

14) Evaluation Criteria

Proposals will be evaluated based on: 

• Technical expertise and experience of the applicants (60%) 

• Financial competitiveness (40%)