Due diligence helps an investor frame an investment opportunity and, more importantly, to gauge the risks.
Experienced investors understand this, but it can be easy to overlook critical elements of the process.
Take the first step, which can be a broad, overarching question such as “What do they sell?”
Most companies sell multiple products or services – and often they sell both. So, it’s important to understand every product and service that generates revenue and, ultimately, cash flow and earnings.
Several factors can have a huge impact on the attractiveness and risk of the investment opportunity.
Read more at MJBizDaily’s Investor Intelligence.
