Angel_Guidebook_-_Due_Diligence_Questions.pdf - APPENDIX 8...

This preview shows page 1 - 2 out of 6 pages.

8.1 CORPORATE STRUCTURE AND GOVERNANCE (REVIEW DOCUMENTS AND INTERVIEW MANAGEMENT, BOARD, AND ADVISORS) / What is the company’s corporate structure? C corp., S corp., LLC or LP? Does this model allow for a liquidity event and/or return on investment? / Is there an exit strategy? / Is the corporate structure overly complicated? If so, why, and might it be simplified? / How many existing shareholders? Too numerous, and, if so, why? / Does the corporate structure fit with the business model? / Does the corporate structure allow for growth? / What is the founder share allocation? Do they have a large enough stake to have the incentive to succeed, but not so large as to ignore board and other advisors? Is the founders’ stock vested over time? / Who is on the board of directors? Do they have the right background for the company? Is there a sufficient number of outside directors? How are board members compensated? / Does the company have a board of advisors and, if so, who is on the board? Do the advisors actively participate in the company’s development? How are advisors compensated? / Has the company been involved in any litigation or been threatened with litigation? / Does the company have all required permits and licenses? FINANCIAL ASSUMPTIONS AND REVENUE SOURCES (REVIEW ALL FINANCIAL DOCUMENTS) / Has the company completed one-, three- and five-year financial projections? / Have the financial documents been properly developed according to applicable accounting rules? / Has the company used an outside, independent accounting firm to compile, review, or audit financials? A P P E N D I X 8 I S S U E S T O C O N S I D E R I N D U E D I L I G E N C E
Image of page 1

Subscribe to view the full document.

8.2 / How good are the assumptions? (rate of growth, acceptance rate, pricing, multiple revenue streams, costs) / Are revenues realistic?
Image of page 2
You've reached the end of this preview.
  • Spring '17

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern