Due Diligence for a startup - what's involved?

DD - going to the trenches.<p>Well, you guys are not the ones that are responsible for doing the due diligence if you are getting bought out.<p>But, if you want to know some of details needed then I would have all of this information ready;<p>Financials - past, present, future projections Detailed company information - revenue drivers, strategy, marketing strategy, how are you getting customers (paid / not paid ), how much revenue per customer, lifetime revenue, lifetime of a customer Revenue driver margins, future revenue drivers? Competitor analysis - what keeps you ahead/behind Growth areas for your industry/business All industry info - qualitative and quantitative Porters 5 forces would help with getting to know a startup Management team background Advisor background Current stock ownership, options, ect Laws surrounding your product - what is the legal landscape, any pitfalls or shifts that will negatively/pos impact your biz? Economics of the biz - costs, expenses, variable costs, ect Operating plans Critical risks list of assumptions<p>Thats a bunch off of the top of my head - some of those categories hold a bunch of topics like 'fin statements' make sure you have balance sheet, cash flow, income statement, valuation model, ect.<p>Hope that helps, there is more..

For starters:<p>1) Who is the offer from? What are their credentials? Are they a (well)known /trustworthy entity, with some sort of track record?<p>2) If not, it could be a 'ploy' from a competitor at worst, or a frivolous offer.<p>3) In any case, consult a (competent) lawyer with relevant experience before disclosing any proprietary information (that could not be otherwise available) to them.<p>-HTH