Ready to Be Funded? Let’s Find Out! Leadership Team Are proven leaders Has taken a venture-backed organization to it successful exit Has an established track record of growing an organization or division Is known for their ability to inspire and motivate other managers and employees Has participated in writing the business plan and/or updating it Has a track record of weathering hard times (founding their own organization, turning around a struggling organization, etc…) Market List of all competitors and detailed market share List of major clients Analysis of pricing strategy Current marketing materials and sales funnels Sales commission structure Sales projections by product line All pertinent marketing studies conducted by proven outside parties Services/Products Descriptions of product offerings including market share by product line Inventory analysis including turnover, obsolescence and valuation policies Backlog analysis by product line including analysis of seasonal issues List of all major suppliers including dollar amount purchased per year Corporate Documents Articles of Incorporation Bylaws Operating Agreements Shareholder Agreements Minutes of Board of Directors and Shareholder meetings All documents furnished to Directors and Shareholders Certificates from all states in jurisdictions where Target Organization does business Securities Issued Copies of stock certificates, warrants and option agreements Complete Stockholder contract information Number of outstanding shares, dates of issuance, percent of ownership Outstanding preferred stock and covenants Outstanding options, warrants or convertible securities Employee stock benefit programs; stock options, stock purchases and others Financial Information Audited financial statements since inception Income statements, balance sheets, cash flow statements Records of all changes in equity position Accounting methods and practices Organization prepared monthly or quarterly statements 5 year budget and financial projections Current Business Plan and Executive Summary Aging Accounts Receivable and Accounts Payable Service/Product pricing plans and policies Revenue and gross margins by Service/Product Extraordinary income or expense details Explanation of any material write-downs or write-offs Summary of bad debts Outstanding contingent liabilities detail Accountants report on the Target Organization’s financial condition Tax Status Federal and State income tax returns for the last 3 years Detail of any tax audits Detail of any tax liabilities Contracts and Agreements List of bank and non-bank lenders Joint venture and partnership agreements License agreements Purchase agreements Liens, equipment leases, mortgages and any outstanding loans Insurance contracts and agreements Supplier, Vendor and Customer contracts All additional contracts or agreements associated with the business of the Target Organization Government Regulations Copies of all permits and licenses Copies of reports made to governmental agencies Details of any inquiries made by any Local, State or Federal agencies Litigation Details of any current litigation including potential damages Details of any potential litigation including potential damages Settlement documentation
