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We take special pride in our ability to accurately evaluate potential deals. We are confident that with the experience, marketing intelligence technologies, and analytical skills we bring to the table that we will outperform our competitors. We ask a lot of questions and when we get the answers, we ask some more. Our goal is to know our potential partners better than anyone else. In general, our exhaustive risk evaluation process includes the following:
- Industry Evaluation - Is the company in an industry, which we invest? Is the company operating within a growth or mature segment of the industry
- Company Analysis - An evaluation of the company form inception to include founders, founding principles and what makes the company special. Does the company operate within a certain niche within the market?
- Market Evaluation - Is there a need in the market for the product/services officered by the company and what are the competitive threats to the company?
- SWOT Analysis - An analysis of the company's strengths, weaknesses, opportunities and threats and how can these be utilized to better the company
- Management - What is the capability of the existing management team? Are the key managers willing to sign long-term contracts? What type of talent is needed to compliment the existing management team and is the company willing implement investor recommendations including talent placement
- Regulatory - An evaluation of any government or regulatory constraints that would limit the ability for the company to grow
- Operations - An evaluation of the current internal operations and the ability to expand operations to grow the company
- Technology - An evaluation of the company's current technology and what technology is needed for the future
- Benchmark Analysis - An assessment of key financial and operational state in comparison to key competitors
- Growth Analysis - An evaluation of the key drivers of the business and a determination as to what will be required (capital, infrastructure, M&A, etc.) for the company to meet required investment growth rates
- Risk Analysis - An evaluation of known and potential risk within the industry and the potential impact of those risks on the business.
- Company Valuation - An analysis of the potential value of the entity utilizing three different assessment approaches: Book Value, P/E, Comparable Deals
- Financial Analysis - A complete P&L and balance sheet evaluation of the business of key drivers and ratios along with their implications to the business to include:
– A/R aging
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Concentration Analysis
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Cash Flow Analysis
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Working Capital Analysis
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Inventory management
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Leverage Analysis
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