After a prospective investment passes our quantitative evaluation, we work with the Deal Partner to assess the qualitative components of the opportunity.
Customers, Suppliers and Competition
What is the basis by which customers choose suppliers?
What is the degree of customer loyalty?
How financially strong are customers and competitors?
How easily can customers multi-source product?
Are there opportunities to acquire (or be acquired by) competitors?
Can cost increases be easily passed along to customers?
What are the size and the growth prospects for the market/industry?
What are the barriers to expanding market share?
What are the marketing and sales dynamics of the industry?
Can the company raise prices?
What are the capital costs and payback period for expanding capacity?
Is there potential for the company to expand into related markets?
How capable is the CEO?
Is this CEO the right individual to grow the company going forward?
How deep is the management team?
What management resources is the company lacking?
What is the level of management and employee loyalty?
What financial controls are currently in place?
What is the sustainability and growth potential of profit margins?
What are the drivers of product costs and how thoroughly does management understand these drivers?
At what sales levels will capital improvements be required?
What is the adequacy of current plant layout?
What are the key performance metrics?