Before investing in a Computer Hardware Distributor
Snippets of the 80 questions from the white paper
Has the company lost clients within the past 12 months? Who are the top 3 clients? Account for their revenue What are the company’s biggest threats in the next 12 months?
How do the people in the business get along with you? Do you have preferences as to having other investors on board or not? Are you prepared to invest in the business again at a later stage?
Does the company owe anything in taxes, VAT or similar payments? How has achieved results in the past months been compared to budgeted for? How much runway (in months) does the business have with the current cash burn?
Assets and liabilities
What are the company’s main liabilities? What are the company’s main assets? Does the company own any properties?
Will the monthly cash burn change after an investment? How many days on an average pass from receiving payment to paying the distributor? (Cash to cash cycle) What are the 3 main sources of cash burn?
What is the process to minimize losses? What are the 3 main risks? How does the company handle its taxes and VAT?
How do you differentiate from competitors? How many competitors do you have? Who are the main competitors?
Any customers with not paid and outstanding invoices? Which? How many customers pay late?
Are the distributors there because of personal relations or simply business? What are the payment terms to distributors? Identify the 3 main distributors to the company - what if they stop delivering?
Who controls the company? Does the company have any contractual disputes? Does the company have any disputes with current or former employees?
How does the organisation look in 6 and 12 months from now? How does the company make sure the key employees stay onboard? What if the key employees quit?
Scale, future growth and potential exit
What would be important for potential buyers? Who would be the potential buyers of a company like this if you we’re one day to make an exit? What is the strategy for the coming years?
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