Download - Poem Framework Due Diligence
Techno Vision Communications © 2013
DUE DILIGENCEUSING
THE POEM® FRAMEWORK
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Techno Vision Communications © 2013
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The POEM® Framework
PROPOSITION ORGANISATION ECONOMICS MILESTONES
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Techno Vision Communications © 2013
Due Diligence Definition & Purpose
What we want to Know Where we get the information from
“Due diligence” is a systematic collection & analysis of relevant business information to form an opinion. An investigation of the business, its vision, current status, practices, processes and
policies. An examination aimed at giving information for an investment decision using the
principles of shareholder value analysis for evaluation.
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Techno Vision Communications © 2013
Information Required
PROPOSITION
• Market analysis• Customer analysis• Sales analysis• Competition• Pricing/Profit margin• Regulation• Supplier
ORGANISATION
• Organisation Chart• JD, R&R• Processes-Sales-Marketing-Procurement-Logistics-Customer-Staff• Technology usage (Users, Front & Back end)
ECONOMICS
• Current & Historical Performance• Projections(3-5 years)• Balance Sheet• Cash flow• Profit & Loss
MILESTONES
• Future strategy• Business model• Customer base• Operation growth• Stage Funding expectations
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Techno Vision Communications © 2013
What we should know after Due Diligence
Entrepreneurial Vision
Track record of success
Management depth
Satisfactory Revenue Strengths
Credible future profitability
Acceptable Cash needs
ECONOMICS
(FINANCIAL RETURNS)
MILESTONES
(EXIT POTENTIAL)
Good exit routes
Feasible –follow on investment
Satisfactory exit value
Product/Service Line
Competitive advantage
Growth market
PROPOSITION
(MARKET STRENGTH)
ORGANISATION
(MANAGEMENT DEPTH)
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