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Minimum standards
of due diligence for ACA NE syndication
Financials
Historical financials (audited is preferred,
but not required for minimum standards)
Current year plan v. actual
Forecasted financials (including cash flow to
next round or breakeven)
Additional cash investments required and
where cash is going to come from
Financial model
Balance Sheet
Accounts Payable
Cap Table fully diluted, variations in
terms, preferences
Debt outstanding
Market
Market Opportunity
Newcos solution for the market
Competition
Market Share
Who are the likely M&A players (potential
acquirers)
M&A activity in the sector (with multiples)
Sales and Marketing
Strategy
Pipeline (need for confidentiality might
limit who in any group sees this)
Price and price history
Product description
Positioning
Placement (channels)
People
Full resume of each member of management team
Bios of board members (SHB: Suggest we add
bios of Advisory Board if applicable)
References: prior customers (ie before
joining/starting Newco), 360 degree, business
partners, plus independent checks
Reps, warranties & disclosures (any legal
issues; conflicts of interest etc)
Employment status at Newco
Employment contract
Non compete and assignment (example: founders
assigning IP rights to the company)
Intellectual Property
List of patents with status
Trademarks
Copy of patents
Other IP activity
Status of filings, including ensuring
payments are current
Depending on the deal/industry: Freedom to
operate; expert opinion/valuation; non competes,
clearance from prior agreements
Contracts
Copies of material contracts (including
license agreements, if any)
Review of license agreements for IP and
financial impact
Employment agreements
IP ownership
Regulatory Issues
Other Legal
Any claims, threatened or pending claims or
litigation
Notification of lawsuits
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