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DUE DILIGENCE
USING
THE POEM® FRAMEWORK

Techno Vision Communications © 2013
Wednesday, 13 November 13

1
The POEM® Framework

PROPOSITION
ORGANISATION
ECONOMICS
MILESTONES

2

Techno Vision Communications © 2013
Wednesday, 13 N...
Due Diligence Definition & Purpose

What we want to Know

Where we get the information from

“Due diligence” is a systemati...
Information Required
PROPOSITION

ORGANISATION

ECONOMICS

MILESTONES

• Market
analysis
• Customer
analysis
• Sales
analy...
What we should know after Due Diligence
PROPOSITION
(MARKET

STRENGTH)
ORGANISATION
(MANAGEMENT
DEPTH)

Product/Service Li...
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Poem Framework Due Diligence

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Here's how to use the POEM framework for due diligence on a start-up for investment

Poem Framework Due Diligence

  1. 1. DUE DILIGENCE USING THE POEM® FRAMEWORK Techno Vision Communications © 2013 Wednesday, 13 November 13 1
  2. 2. The POEM® Framework PROPOSITION ORGANISATION ECONOMICS MILESTONES 2 Techno Vision Communications © 2013 Wednesday, 13 November 13 2
  3. 3. Due Diligence Definition & Purpose What we want to Know Where we get the information from “Due diligence” is a systematic collection & analysis of relevant business information to form an opinion.  An investigation of the business, its vision, current status, practices, processes and policies.  An examination aimed at giving information for an investment decision using the principles of shareholder value analysis for evaluation. Techno Vision Communications © 2013 Wednesday, 13 November 13 3
  4. 4. Information Required PROPOSITION ORGANISATION ECONOMICS MILESTONES • Market analysis • Customer analysis • Sales analysis • Competition • Pricing/ Profit margin • Regulation • Supplier • Organisation Chart • JD, R&R • Processes -Sales -Marketing -Procurement -Logistics -Customer -Staff • Technology usage (Users, Front & Back end) • Current & Historical Performance • Projections (3-5 years) • Balance Sheet • Cash flow • Profit & Loss • Future strategy • Business model • Customer base • Operation growth • Stage Funding expectations Techno Vision Communications © 2013 Wednesday, 13 November 13 4
  5. 5. What we should know after Due Diligence PROPOSITION (MARKET STRENGTH) ORGANISATION (MANAGEMENT DEPTH) Product/Service Line Competitive advantage Growth market Entrepreneurial Vision Track record of success Management depth ECONOMICS (FINANCIAL RETURNS) Satisfactory Revenue Strengths Credible future profitability Acceptable Cash needs MILESTONES (EXIT POTENTIAL) Good exit routes Feasible –follow on investment Satisfactory exit value Techno Vision Communications © 2013 Wednesday, 13 November 13 5

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