Agenda for deep dive due diligence session

I am about to jump on a flight to visit a company for a two day due diligence session with a prospective investee company. We are getting pretty close to the point where we will negotiate a deal now (or not) and it is pretty common at this point in proceedings to go and spend a good chunk of time with a company to cover all remaining areas od the business and do a deep dive into remaining areas of uncertainty.

Right now I’m collecting my thoughts and making sure I’m clear on the top three things we want to get out of this trip. I won’t say too much about the company because I don’t think either they or we would benefit from the world knowing we are in serious discussions, but to give you some context on my thoughts below, but I will say that the company is a network play with a partner oriented customer acquisition strategy.

Top three priorities:

  • Network health – is the growth still coming, are the conversions at all the choke points still holding, looking at the above by cohort, understanding churn
  • Efficacy of partner led customer acquisition – more detail on the pipeline of prospective partners, the practical experience with onboarding partners, and of success with existing partners
  • Next level understanding of end user benefits, value proposition and long term monetisation potential

In parallel with the above we will be hoping to take comfort from getting to know the team better and feeling the vibe in the company’s offices over an extended period.