requestlist.pdfVIP

Pytheas Business Guides January 2001 Due Diligence Request List Pytheas Business Guides Due diligence is a form of research conducted by investors to make certain they are getting exactly what they agreed to buy. Copyright © 2001 Pytheas Limited 16 November 2001 2 Pytheas Business Guides DUE DILIGENCE Due diligence is a form of research conducted by investors to make certain they are getting exactly what they agreed to buy. For the venture capital investment process, due diligence means a rigorous investigation and evaluation of an investment opportunity before committing funds. This investigation is conducted by the parties involved in preparing a registration statement to form a basis for believing the statements contained therein are true and that no material facts are omitted. This process includes review of its management team, business conditions, projections, philosophy, and investment terms and conditions. Absolutely vital to making a sound investment, due diligence verifies any business opportunities that survive the initial screening stage. This verification process consists of checking the accuracy of business plans, audited accounts, and management accounts; getting replies to warranty and other standard questionnaires; patent searches; and technical studies. Unpublished accounting information and subjective information are equally important; these data are collected by calling customers, suppliers, lawyers, and bankers, and