 METHODOLOGY AND DELIVERABLES Depending on the size of the company, we will typically undertake 2 to 4 days of interviews at the target company with management and other key figures.
Following a short period of research and report-writing, the deliverable to the investor will be a due-diligence report and verbal presentation assessing the adequacy of the business plan, the current management team and the realistic potential of the market opportunity.
Optionally, we can also provide a full technical due-diligence report on the company's product(s) and development process.
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 DUE DILIGENCE SERVICES FOR INVESTORS
Definitive Impact looks at three types of risk on behalf of potential investors (VCs and acquirers) and we will carefully discuss with you the level of depth you want to achieve in each.
Our two main areas of expertise are enterprise software and telecoms companies in the B2B market. The risk areas for due-diligence purposes we can assess are:
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Market risk
Through targeted industry research we look at answers to some of the following key questions. What is the true market size for the investee company? How connected are they to the customer problem? How do/will they compete with established competitors? What is their customer acquisition strategy and will it be effective? In particular, we use our industry experience to objectively assess the competitive differentiators and moats the company has and form an opinion on their sufficiency to enable success. |
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When confronted with a go/no-go decision, use an experienced industry specialist to give you a realistic view on whether the company has a good chance of succeeding or not. |
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Technology Risk
A key question we examine is: does the product or service portfolio exhibit minimum scalable viability for its next stages? In other words how directly related is it to a pressing customer problem and is it under or over-engineered to achieve sequential revenue growth and are they employing big batch or continuous deployment release schedules? In our experience, this is an often under-researched area of due-diligence but is possibly one of the most important factors in a company's eventual success.
Optionally, we’ll also take a detailed look at the processes and levels of documentation, product capabilities (current and future), code management practices, production capabilities and quality assurance practices at the investee company.
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Execution Risk
You will no doubt already have formed a view of management capabilities during your own due-diligence activities but we can both add a second view and provide something more difficult to achieve: an in-depth view of peer and customer interactions at the company. When we focus on process and procedures people lighten up, mention key challenges and provide subtle hints of risks and obstacles to success.
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