I touched upon due diligence, and the common sense of asking the right questions, a couple of times last week. There’s a flip side to that which I discussed with a private equity house yesterday: the common sense of keeping your house in order.
If you are a business seeking investment (or a seller of a company) getting yourself in shape, and looking tidy and organised when answering questions/producing documents, will all help you present yourself in the best possible light, and reinforce the message that your business is well run, efficient and valuable.
Spending time getting the basics in order will be helpful massively later down the line: your corporate information, statutory books, property leases and agreements, key contracts, asset registers, intellectual property details, employment etc. If you know where they are, have copies to hand and can answer questions quickly you can only look (even more) credible.
It’s best practice, really. But you will also save time. Better than spending ages to collate a pile of unconsolidated and messy paperwork, which will only dishearten your investor and put you under pressure, put it that way….