Capital Raising Part 5: Due Diligence and Deal Development

When our members have indicated there is sufficient interest both in terms of investment and wanting to participate in due diligence, we kick off this process:

What is due diligence? This is a comprehensive appraisal of the opportunity undertaken by a team of Enterprise Angels members, to verify and fully understand the various aspects of the business and evaluate the risks and potential benefits.

Preparation

We will provide details of the process and what you will need to provide, generally in the areas of:

  • Corporate organisation
  • Financials
  • Real property, plant and equipment of the business
  • Intangibles of the business
  • The industry
  • Marketing and distribution
  • Products and technology
  • Production
  • Other contracts and commitments
  • Management and employees of the business
  • Environment
  • The offer

Initial Meeting

We will arrange a meeting with a team of 4-6 members, yourself and other key parties to agree a process, roles and timelines – typically 2-3 weeks.

Data Room

You can either share a previously prepared dataroom with us, or we will set this up for you and get you to upload the required information.

Draft Report

When the various sections are complete, we will compile a draft report and provide for your feedback.

Due Diligence Review Meeting

When you are happy with the report we will arrange another meeting with interested investors so they can gain a full understanding, and you can answer any further questions they have.

Deal Development

After Due Diligence we will work with you to agree a term sheet which forms the basis of the legal documentation required for settlement. We will work with you and your lawyers to finalise this.

Get in touch!

We welcome engagement from anyone interested or involved in the early stage investment market - Investors, Angel Members, Strategic or Corporate Partners, Founders, Incubators or Accelerators, Deal Referrers, Acquisition Partners etc.