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Startup Investment Due Diligence
Due diligence is the bedrock of any financial or strategic engagement with a startup. It provides companies with insight into their targets so they can make the right decision and negotiate terms to mitigate potential risks. Largely confined to financial information two decades ago, investment due diligence now covers every meaningful dimension of a target company, including strategy, operations, marketing and sales, finance, leadership, and human resources.
As more corporate and private venture capital firms chase a limited number of attractive deals, pressure is intensifying on acquirers to vet targets thoroughly under short deadlines to close investment rounds. Due diligence is particularly challenging for corporates since they must consider the strategic implications of a deal, in addition to the potential return of the investment.
We specialize in the commercial due diligence of early-stage technology companies. Many of these companies are pre-revenue, and the majority are pre-profit. Since traditional financial diligence methods are ineffective, it is critical to understand a target's technology and business model in the context of the wider competitive environment.
DURATION
Engagements can be short (within one month) or long (several months) depending on the objectives and scope.
LANGUAGE
English, German, Chinese
Information
Who is this for?
Seniority: C-1 (e.g., vice president, global head of X), C-2 (e.g., director, regional head of X)
Functions: Business Leadership (e.g. P&L ownership), Strategic (e.g., strategy, M&A)
Benefits
- Gain practical insight into the prospects of a target based on an analytical, fact-based approach.
- Access objective opinions from third party domain experts to sense check decisions.
- Put the performance of the target into the context of the relevant industry and market dynamics.
