INVESTMENT CHECKLIST
INVESTOR:
DATE:
-
Day
-
Month
Year
Date
Who are we investing in? Who are the Founders and Key People:
BUSINESS INDUSTRY:
Are they a Blue Rock current client? Will they become one?
Investment Option (shares, purchase business, merger etc):
Investment Funding (cash, debt, fee conversion etc):
Investment Amount:
Other Stakeholders/Who is involved in the deal:
THE FOUNDERS
How many founders does the company have?
Three+ (0)
One (1)
Two (2)
How strong is their time & equity commitment?
0
1
2
3
Weak
Strong
0 is Weak, 3 is Strong
How strong is their financial skillset?
0
1
2
3
Weak
Strong
0 is Weak, 3 is Strong
How strong is their business acumen?
0
1
2
3
Weak
Strong
0 is Weak, 3 is Strong
How strong are their leadership skills?
0
1
2
3
Weak
Strong
0 is Weak, 3 is Strong
How strong are their synthesizing and problem solving skills?
0
1
2
3
Weak
Strong
0 is Weak, 3 is Strong
Would they be easy to work with, handle critism well?
0
1
2
No
Yes
0 is No, 2 is Yes
Are they Administrators or Rainmakers?
1
2
3
4
Administrators
Rainmakers
1 is Administrators, 4 is Rainmakers
THE MODEL
Does the business operate as a recurring (tech) or service-based (people) model?
1
2
3
Service-based
Recurring
1 is Service-based, 3 is Recurring
Is there a strong/proven demand from customers/clients?
0
1
2
3
4
5
Unproven
Proven
0 is Unproven, 5 is Proven
Are the financial forecasts / modelling credible?
0
1
2
3
4
No
Yes
0 is No, 4 is Yes
How strong is the current revenue profile?
0
1
2
3
4
5
Weak
Strong
0 is Weak, 5 is Strong
How strong is the current Profit / Loss (cash burn)? With a 3 being 'break even'.
0
1
2
3
4
5
Heave Loss/Burn
Strong Profit
0 is Heave Loss/Burn, 5 is Strong Profit
THE MARKET
Does the business have a market advantage? i.e. one full hand on offer.
0
1
2
3
4
5
No
Yes
0 is No, 5 is Yes
Is the total direct market of significant size?
0
1
2
3
4
>$50M
0 is >$50M, 4 is
Is the applicable market local, national or global?
Local (0)
National (1)
Global (2)
PROTECTED POSITION
How strong is the proprietary protection?
0
1
2
3
4
5
None
Strong
0 is None, 5 is Strong
Is the business first to market, is the head start signIificant?
0
1
2
No
Yes
0 is No, 2 is Yes
How defensible is the business from competitors?
0
1
2
3
4
5
None
Very
0 is None, 5 is Very
SCALEABILITY
Does the business require inventory?
0
1
2
Significant
None
0 is Significant, 2 is None
How much scale can be achieved by adding tech, not heads?
0
1
2
3
4
5
None
All
0 is None, 5 is All
Is the business at or near a proven upwards inflection point?
0
1
2
3
4
No
Yes
0 is No, 4 is Yes
RELATIONSHIPS
How strong are the current lead shareholders?
0
1
2
Weak
Strong
0 is Weak, 2 is Strong
How strong is the broader management team?
0
1
2
3
4
5
Weak
Strong
0 is Weak, 5 is Strong
How strong is the Board / Advisory panel?
0
1
2
3
4
Weak
Strong
0 is Weak, 4 is Strong
Are their existing relationships with other value adding partners?
0
1
No
Yes
0 is No, 1 is Yes
EXIT STRATEGY
Is this a lifestyle business or focused on shareholder returns?
0
1
2
3
Lifestyle
Max returns
0 is Lifestyle, 3 is Max returns
Will the business be sold in the next 3-5 years? i.e. Long term or flipped.
1
2
3
Long term
Flip
1 is Long term, 3 is Flip
THE RAISE
Has an external business valuation been completed?
0
1
2
No
Yes
0 is No, 2 is Yes
Does this round have a lead investor with min 15% equity?
0
1
No
Yes
0 is No, 1 is Yes
INVESTMENT SCORE
Report completed by
NAME
SIGNED
*
INVESTMENT SCORE | 100
Pros/Cons of doing the deal:
Recommendation:
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