Due Diligence

D

Where do the red and yellow flags come from? Some from the initial pitch. Most from the due diligence process after the pitch. This is a long, complex process that begins by questioning that business plan (or pitch):

Part 1: An introduction to due diligence and diligence on the business pitch/plan

Next, question the market opportunity. Is it big enough to bother looking even further into this company?

Part 2: The market opporutnity

Next, question the marketing plan, the sales process, and the organization of the sales team (internal or external).

Part 3: Sales and marketing

The key to success is timing, luck, and team, and finally we take a look and question the team.

Part 4: Team

Next, take a deep dive and full tour of the product, and look under the covers to review the operations.

Part 5: The product and company operations

Is there any cash in the bank? Are there any debt due? What is the current status of the business?

Part 6: The status of the business

Finally, we look to see if the company has dotted all of its legal i’s and crossed all of its legal t’s, and we finish up questioning the risks of this investment opportunity.

Part 7: Legalities, risks, and red flags

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