Before investing in a Computer Hardware Distributor

DueDiligenceQuestions.com

Questions to ask before investing in a Computer Hardware Distributor 80 due diligence questions. This white paper is a preview. Get the full white paper here: https://duediligencequestions.com/computer-hardware-distributor.asp for 9,95 USD. Copyright notice This white paper and its content is copyright of DueDiligenceQuestions.com. All rights reserved. Any redistribution or reproduction of part or all of the contents in any form is prohibited. You may not, except with our express written permission, distribute or commercially exploit the content.

General Question

1. If you were to play devil�s advocate, what are the negative things about this particular business?
2. What are the company�s biggest threats in the next 12 months?
3. --- --- --- --- - -------- ------- --- ----- ------- ?
4. --- --- ------- ---- ------- ------ --- ---- -- -------?
5. --- --- --- ---- --------- ---------?
6. ---- -- --- --------- ------- -------- ?
7. ---- --- --- ------- ------- ---- --- ------- --------?
8. ----- --------- ----- ---- --- ------- -----?
9. ---- --- ------- --- --------- -- ----- ------- ------?
10. ----- ----------- ---- --- ------- -----?
11. ---- --- --- ---- ------- --- --- --------?
12. ---- -- --- ---------- -- --- --------- ----- -- ---------?
13. --- -------- ----- ------------ -- ------------- ?
14. --- --- ------- -------- --- --- ---- -- --- ---- -- -------?

About you

15. What is your objective with the investment?
16. Are you prepared to invest in the business again at a later stage?
17. -- --- ---- ----------- -- -- ------ ----- --------- -- ----- -- ----?
18. --- -- --- ------ -- --- -------- --- ----- ---- ----?
19. ----- -- --- ---- --- ------- -- -- -- -- -- -- ------?
20. --- ---- -- --- ---- -- -- -------- -- --- ---------?

Financials

21. What is the current monthly cash burn?
22. How much runway (in months) does the business have with the current cash burn?
23. --- --- -------- ------- -- --- ---- ------ ---- -------- -- -------- ---- ?
24. ---- --- ------- --- -------- -- ------ --- -- ------- ---------?
25. ---- --- ------- ---- ---- ------ --- ----- ----- --- -- -----?
26. ------- --- ------ -------- ?

27. ---- --- ------- ---- ----- -- --- ------- ------- --- --- ----?
28. --- ---- --- ------- ------ --- ---------?
29. -- --- ------- - ----- -------- ---------?
30. -- --- ------- - --- ------ --------- ?
31. ----- ------- -------- ---- --- ------- ----- ---------?
32. ---- -- --- ------- ------ -----?
33. ---- -- --- -------- -------- --- ------- --------- -----?
34. ---- -- --- -------- ------ --- --- ------- --------- -----?
35. ---- --- ------- ---- ------ ----- -- ------- ---------- -- ------ ?

Assets and liabilities

36. Does the company rent any properties?
37. Does the company own any properties?
38. ---- --- --- --------- ---- -------?
39. ---- --- --- --------- ---- ------------ ?
40. ----- ------ ---- --- ------- ---- ---- -- ---- -- -----?
41. ----- ------ ---- --- ------- ---- ---- --- --- ---- -- -----?

Cashflow

42. What are the 3 main sources of cash burn?
43. How many days on an average pass from receiving payment to paying the distributor? (Cash to cash cycle)
44. ---- --- ------- ---- ---- ------ ----- -- ----------- ?

Risk management

45. What are the payment terms for clients?
46. How does the company handle its taxes and VAT?
47. ---- --- --- - ---- ------ ?
48. ---- -- --- ------- -- -------- ------- ?
49. ---- --- --- --- - -------------- ---------- ------------ -- --- --------?
50. ---- -- --- --- - --------- ------- ------ ---- --- --------?
51. ---- --- --- ---------- -- --- ------- ---- ---- ---------?

Competition

52. Are the competitors thriving or struggling?
53. Who are the main competitors?
54. --- ---- ----------- -- --- -----?
55. --- -- --- ------------- ---- ------------?
56. ---- --- ------- ---- ------------ -- ----- -- ------------- ------ --------- -- ----- --- ----------?

Clients

57. How many customers pay late?
58. Any customers with not paid and outstanding invoices? Which?

Distributors

59. Identify the 3 main distributors to the company - what if they stop delivering?
60. What are the payment terms to distributors?
61. --- --- ------------ ----- ------- -- -------- --------- -- ------ ---------?

Legal

62. Does the company own any IP rights?
63. Does the company have any disputes with current or former employees?
64. ---- --- ------- ---- --- ----------- --------- ?
65. --- -------- --- --------?
66. ---- --- ------- ---- - ------------ ------ ------?
67. ---- --- ------- ---- ------- ------?
68. ---- --- ------- ---- --------- -- ----- ----------?
69. --- --- ------- ---- -- --- -------- --------- ------ --- -- ------- -- --- ---- -- -------?
70. -- --- ------- -------- -- --- -------- ------- -- ------------- --------?
71. -- --- ------- -------- -- --- ----- ---------?

Organization

72. Who are the key employees/persons in the business?

73. What if the key employees quit?
74. --- ---- --- ------- ---- ---- --- --- --------- ---- --------?
75. --- ---- --- ------------ ---- -- - --- -- ------ ---- ----?
76. --- ----- --- --- --------- --- ------- --- --- -------- --------?

Scale, future growth and potential exit

77. Does the company expect to raise money again? When and how much?
78. What is the strategy for the coming years?
79. --- ----- -- --- --------- ------ -- - ------- ---- ---- -- --- ----- --- --- -- ---- -- -----?
80. ---- ----- -- --------- --- --------- -------?