Major Due Diligence Topics

The Opportunity

  1. Quality of product/service
  2. Reachable target market
  3. Size of target market
  4. Product plan/milestones

Sales & Marketing

  1. Reference accounts
  2. Acquisition/retention
  3. Sales forecast/plan
  4. Marketing Plan
  5. Sales & marketing talent

Competition

  1. Current and/or expected competition
  2. Competitive position
  3. Analysts perceptions

Technology

  1. IP (Patents/copyrights/marks)
  2. Designs, drawings and process
  3. Product development
  4. Product readiness
  5. Technical executives

Financial

  1. Income statement
  2. Balance sheet
  3. Cash flow
  4. Forecasts
  5. Financing risks

Legal Structure & Status

  1. Organizational documents
  2. Litigation, insurance, compliance
  3. Contracts, agreements
  4. Environmental

Management

  1. Management team
  2. References
  3. Organization
  4. Governance and advisory board
  5. Pertinent contracts, non-competes

The Deal

  1. Term sheet
  2. Valuation
  3. Exit