The average private equity investor reviews about 80 opportunities for every closed deal!
Just because an inclination was shown doesn’t mean you will get the funding.
There are a massive number of ‘𝙘𝙝𝙚𝙘𝙠𝙨’ done before you receive the ‘𝙘𝙝𝙚𝙦𝙪𝙚’! These checks are nothing but – Due diligences.
Here are a few things you must keep in check to make sure things run smoothly and the due diligence is done quickly:
1) 📂 Are all your company documents in order? a) Gather your company’s essential documents b) Make it easy for the private equity firm to navigate through the information
2) ✅ Are you compliant with all matters? a) Turn compliance into a competitive advantage b) Thoroughly review your company’s adherence to regulations c) Address any potential compliance challenges early on
3)💰 Do you have your financial statements ready to go?
a) Prepare financial statements that captivate and impress.
b) Show your financial prowess by presenting clean, accurate, and well-documented records.
c) Illuminate key projections using compelling evidence to support your growth potential.
4) 💎 Are you prepared with the Intellectual property documents?
a) Highlight your companies intellectual property.
b) Showcase your patents, trademarks, copyrights, and trade secrets.
c) Prove that your valuable assets are protected.
5) 🔮 How is your relationship with other vendors?
a) Cast a spell with your contractual prowess.
b) Examine every clause, turning potential pitfalls into opportunities.
c) Bring clarity to your agreements, ensuring they radiate trust and confidence.
Engage professional advisors as your trusted allies, maintain unwavering transparency, and confidently address any concerns that arise.
A big thanks to Chris Reilly for providing a concise breakdown of the steps involved in private equity firms’ due diligence process.
#investing #duediligence #startups #privateequity #compliance
