What do you look for in an investment deal?
Securing funding can be a challenge, so it can be tempting to jump at the first offer. But how can you tell a good investment deal from a bad one?
What are the things you should look for in a business investor, as well as the deal they are offering?
What are red flags to avoid?
Valuations are predominantly based on 3 things: the proprietary value and soundness of the offer or technology compared to competition; how the company is run (margin, revenue growth story, profitability, innovation pipeline and to some extent leadership team;) and the inherent value of whatever brand the company has built both in the industry and on the street through hearsay and market presence. Those strong in all three are what we would call a triple threat. There are obviously other factors too, but these really are the big ones.
IT Consultant- Apps4Rent | CloudDesktopOnline | O365CloudExperts
Helped buy out two startups. You need to look for people who are straight talkers, clearly laid out plans - nothing whimsical, needs to be clear, transparent business communication. Another thing is, Trust your gut, if the deal feels off, walk away - being stuck in a bad deal vs not having a deal - what seems worse? My guess is the first one....