Not all companies are suitable. When I say this, I don’t mean that some companies don’t deserve investment, but that not all companies deserve your investment. When completing digital due diligence, one of the key questions you are looking to an answer is not if the company is a good investment but is the company a good investment for your fund.
The company might be great, accelerating, strong management team, healthy pipeline and long terms plan. Still, if you do not understand it, gel with the management team, the experience of the investment and the returns will not be what either party wants.
We are ensuring that during due diligence, you don’t just understand the financial business plan and strategy but also the business growth plans and the skillset and experience of the teams and personalities.
During Digital Due Diligence, we focus on understanding the team, the vision and execution plan to grow the business. During this period, we get to know the team, understand strengths and weaknesses and arrangements for executing on the investment.
“Taking investment’s mainly in the entrepreneur-led environment is not for every founder, and they need to see the investor’s value and not just in cash terms.”
It may not initially seem part of digital due diligence. Still, when we start to understand the business, strategy and opportunity, we can see if this is in line with the investment funds strategy and what their aims are for the investment.
These nuances can only come through while understanding the team and execution strategy during a deep dive due diligence.