ch 5. due diligence Flashcards
what are the 6 areas investors seek clarity in during due diligence?
Organization, company info, financial, people, legal/contracts, capitalization/securities
what are the due diligence elements of Organization?
Articles of incorporation
Certificate of good standing
Org charts
Places the company does business
what are the due diligence elements of Company info?
Market Size SWOT analysis Technology used Marketing plan Brand style guide
what are the due diligence elements of Financial info?
Financial stmts (3 yrs) Accountant/CPA Valuation Credit reports Inventory and assets Financial forecasts Cash flow projections Current funding, financing, leases, credit, investors Bank stmts Tax returns and receipts
what are the due diligence elements of Employees, salaries, labor?
Key Team member bios and resumes
Background checks
Employee and contractor agreements
what are the due diligence elements of Legal and contracts?
Patents and IP Trademarks / copyrights Insurance docs License and permit documentation Professional and legal consultants
what are the due diligence elements of Capitalization/securities?
Capitalization table
Exit strategy
Offering documents
Definitions 50-51 capitalization
Definitions 50-51 capitalization
59 - cap table sites
59 - cap table sites
What is 409A valuation?
What is 409A valuation?
What is ASC 718 reporting?
What is ASC 718 reporting?
What are some questions during due diligence interview?
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