Key questions in our due diligence process are:
- Do the products/processes have a clear and sustainable competitive advantage?
- Have there been first market successes (pilot facilities, clinical data, sales, etc.)?
- Is the market attractive (size, growth, returns)?
- Does the competitive landscape allow for a new market entrant?
- Is there a management team with the experience needed to set up the appropriate business structures? What form should those structures take?
If the results of a preliminary analysis are positive, we undertake a detailed analysis. During this phase SHS verifies the company’s market evaluation by means of interviews with users and experts as well as participation of the venture advisory board and the SHS committees. On the basis of this analysis SHS evaluates the financial plan.
A detailed analysis with positive results and the successful negotiation of a preliminary contract are followed by thorough legal and financial due diligence, which serves to uncover any hidden risks that could jeopardize the success of a potential investment. If the due diligence process and the subsequent contract negotiations are successful, an investment agreement is made. The whole process takes three months on average.