Verification process to provide assurance that all assumptions of which investment is based on are true.
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How is due diligence useful?
Can identify areas for improvements and reduce risk, leading to potential gains. Also contributes to the understanding of markets and strategic opportunities
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How VC evaluates an investment proposition?
Is it commercially viable? Does management have ability to control in growth stage? Can management exploit growth potential? Can competitive edge be sustained? Reward justify risk? Return meet criteria?
Manufacturing and production process, supply chain, outsourcing. Identify weakness, areas for imporvements and additional resource required.
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What does legal due diligence assess?
Regulatory environment, compliance, contracts, litigation and likely outcome, title/ownership of assets, IP protection, employment contracts.
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What does Technical due diligence assess?
Technology proven? disruptive? how long can technological advantage be maintained for? product reliable?
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What does Environement due diligence assess?
Compliance of environmental regulations, Land contamination, hazardous materials, environmental management
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Other cards in this set
Card 2
Front
How is due diligence useful?
Back
Can identify areas for improvements and reduce risk, leading to potential gains. Also contributes to the understanding of markets and strategic opportunities
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