Techno Vision Communications © 2013

DUE DILIGENCEUSING

THE POEM® FRAMEWORK

1Wednesday, 13 November 13

Techno Vision Communications © 2013

2

The POEM® Framework

PROPOSITION ORGANISATION ECONOMICS MILESTONES

2Wednesday, 13 November 13

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.

3Wednesday, 13 November 13

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

4Wednesday, 13 November 13

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)

5Wednesday, 13 November 13