Anyone who has watched a show such as Shark Tank or Dragon’s Den will be familiar with concept of due diligence. Investors research a company’s finances and legal documents, as well as customers, key individuals suppliers, customers and before making www.dataroompro.blog/quality-of-earnings-analysis-as-an-essential-part-of-due-diligence a decision on investment. They will also conduct due diligence on the company’s business model, market position and growth projections.
Due diligence is an essential process when it comes to fundraising. It’s designed to verify information provided by potential donors. It typically involves rigorous reviews and assessments that are carried out by a prospect development department or by a specially-trained team. The scope of your inquiry may be wide, so it’s important to clearly define which criteria are most important for your business.
The most popular areas of inquiry include:
Financial Details – A thorough analysis of the background of the potential donor, including their financial history. This will usually cover the last ten years and includes all assets such as liabilities, assets, and earnings data.
Technical Details Investors should know the technology you use and how it will grow in the near future. Investors will also want to know about your customers and any pertinent contract information.
Other areas of inquiry include:
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