This phase is all about solidifying your relationships with all the stakeholders and finalising the details of the contract. This phase will most likely overlap with Phase 2 - Prepare; you will be developing your relationships as you are preparing your internal organisation.
In the UK, deal development usually takes between six and nine months. This might sound long, but it can take up to three years in markets where this type of financing is just getting started.
While each of the key stakeholders enters the deal with their own requirements and perspectives, you can all agree that you would like to find an efficient, accountable, impactful way to help the population in need. Also, don’t lose sight of the fact that a key benefit of the SIB is that it’s a partnership among stakeholders with unique and complementary expertise. Rather than a hurdle, think of this as an opportunity to get support – financial, legal, technical – from experts in their field who are working towards the same goal as you
Tools Referenced in Phase 3
SIB Structure Considerations
Contributed by Numbers for Good
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A summary guide to the typical features of different kinds of SIB – those where the lead contract is respectively the SPV, the Prime Contractor or the Service Provider.
SIB Implementation Plan
Contributed by ThinkForward
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This plan is for use after the ‘green light’, when all parties have made the decision to proceed, but contracts are not yet signed and delivery has not yet begun. It is high-level, leaving scope to customise and add detail.
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