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. 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.