Through a review of the material in the data room and discussions with the CEO, exec team and references, the due diligence lead is able to cover the key aspects of the due diligence:
CEO: caliber, listening skills, and appetite for risk / exit
Leadership team: caliber, complementarity, and compatibility
Advisors: caliber, complementarity, and influence
Board Directors: caliber, governance, and ethics
Ability to attract talent and create an effective culture
Market: must-have, value chain, and company positioning
Product: roadmap, competition, and defensibility
Scale: growth drivers, predictability, and velocity
Business model: revenue, go-to-market, and pricing
Efficiency: cost, supply chain, and margin
Deal: terms, milestones, and general attractiveness
Lead investor: reputation, board experience, and ethics
Future rounds: roadmap, dilution, and general attractiveness
Exit: best case, worst case, and timing
Law firm: reputation
How can our relationships support the business?
Are we aligned in our thinking around an exit?
What role do we want to play post-financing?
When Mighty Capital decides that a due diligence is appropriate, we ask the entrepreneur to make a data room available to the due diligence team with the information listed below.
*Mighty Capital will retain a copy of those documents in its archive post-due diligence.
