We were asked by Founders who were starting their next investment round to help them with the creation and augmentation of their virtual data room to support commercial, financial and legal due diligence, once they had reached heads of terms and while their subscription agreements were being prepared.
Solution delivered:
We began by talking with the Founders on what they were looking to achieve. We agreed a timelined process that would encompass discovery (to ascertain what they already had in existence) and then the collaborative creation of areas where their data room would need augmentation.
The lens that we encouraged the Founders to look through was one of “if they were investing in the business, what would they want to know?”.
Based on this, we established a framework to address financial due diligence (including such items as management, financial and cashflow reports and forecasts, banking and leasing documentation); commercial due diligence (including employment, real estate, Health and safety and insurance); and legal due diligence (including IP, escrow, trademarks and patents, corporate structures and contracts).
This framework was then reviewed, together with the founders, using our own SaaS due diligence checklists, to look at their business through the eyes of an investor and ensure that the questions we would ask as investors had appropriate evidence contained within the virtual data room. Where necessary, and working collaboratively with the Founders, we helped them gather the data and produce what was needed to address these areas ready for the investors.
Results achieved:
Having completed the virtual data room, it was subsequently used by investors to carry out their own due diligence and resulted in the investment round being successfully completed.
If you would like to talk to us, informally and in confidence, to understand how we can help you and develop your business, please contact info@moorgatemanagement.com or call Chris Maityard on 07767 291379.