How to Prepare for a Successful Investor Due Diligence: Your Guide

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One of the most important steps in securing an investment is successfully going through due diligence. This process involves the investor "checking out" your venture, and will include a review of all aspects of your business – from technology to financial records. In order to make the process as smooth as possible, it's important to be prepared and organized. In this post, we'll discuss what due diligence is, and give you a guide on how to prepare for it.

In order to prepare for due diligence, you should start by organizing all of your documents. This includes everything from corporate records to financial statements. You should also be prepared to answer any questions the investor may have. It's also a good idea to have a data room set up, where you can upload all of the relevant documents. 

Financial records will include your audited financial statements, unaudited financial statements and tax records. 

Corporate records are the documents pertaining to the legal set-up of your company. This includes things like incorporation documents, share certificates and registers, articles of association, and your founders agreement.

Material agreements are all the agreements that you have in place with other companies or individuals. This includes things like leases, supply agreements, employment agreement, consulting agreements, advisory board agreements, finder agreements and NDAs.

Employees and consultants are all the people who work for your company. This includes their contracts, job descriptions, and CV.

Intellectual property is all the intangible assets that you own. This includes things like patents, patent applications, domain names, trademarks, and copyright.

The due diligence process can be daunting, but if you're prepared, it will go much smoother. By organizing all of your documents and being ready to answer any questions, you can make the process much less stressful and make a better impression on your potential investors. Good luck!

If you have any questions about the due diligence process, or would like help preparing for it, please don't hesitate to contact us. We're here to help!

Due diligence is an important step.

In case you need us:

Amir M. Gruber, Attorneys @ Law

BSR 3 Tower, 13th Floor, 9 Masada St., Benei Brak 5120109, Israel

Tel: 072-2223111