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Due Diligence Before Buying from a Young Company

Published: Published on Zhilianhai

Check

  • Who owns the core technology and whether it is licensed.
  • Units in commercial operation, and for how long.
  • Spare part strategy for the next five years.
  • Whether source code or escrow arrangements are possible.
  • What happens to support if the company is acquired.

Structure the risk

RiskTool
Company failsEscrow, pre-purchased spares
Roadmap slipsBuy the current version, not the promised one
Key staff leaveWritten procedures and training

Information is provided for initial research. Verify specifications, pricing, policies and standards against the original source before making decisions.

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