article thumbnail

Merger and Acquisition Due Diligence Checklist

The Startup Magazine

When it comes to mergers and acquisitions, taking due diligence takes center stage. On these lines, this guide is going to take you through the Prolifogy Mergers & Acquisitions Checklist and how to take due diligence. Also, review past acquisition agreements and equipment leases. If there are many warrant issues, take note.

article thumbnail

Who are the Major Revenue-Based Investing VCs?

David Teten

So you’re interested in raising capital from a Revenue-Based Investor VC. A new wave of Revenue-Based Investors (“RBI”) are emerging. For background, see Revenue-Based Investing: A New Option for Founders who Care About Control. Rational burn profile, up to 50% of revenue at close, scaling down. Bigfoot Capital.

Revenue 60
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

What is the Right Burn Rate at a Startup Company?

Both Sides of the Table

So if your costs are $500,000 per month and you have $350,000 per month in revenue then your net burn (500-350) is equal to $150,000. We want money to make some acquisitions (investors would prefer to fund M&A if they know specific deals – not to encourage bad behavior. We want a strong balance sheet (um, ok.

Burn Rate 383
article thumbnail

How Much Should You Raise in Your VC Round? And What is a VC Looking at in Your Model?

Both Sides of the Table

There are many things a VC is looking for in reviewing your business plan but beyond things the like the quality of revenue, margins, OPEX and CAPEX there’s a really simple rule I call, “Cash In, Cash Out, Milestones Achieved.” Simply put, a VC wants to evaluate how much cash you’re raising and whether this amount is realistic.

Burn Rate 247
article thumbnail

Beware of Premature Merge Elation

Both Sides of the Table

How much dilution should I take for it?&# My friend’s company was pre-revenue. 500k had come through the last acquisition. For some reason the industry of bankers who try to buy or sell businesses work in what is called the “M&A (mergers & acquisitions) Industry.&# I’ve never understood this.

Merger 276
article thumbnail

Account-Based Marketing vs. Lead Generation: Which is Right for You?

ConversionXL

It’s proven to drive more revenue , improve customer experience , and power growth. But the customer is worth more and the target approach of ABM is warranted. Does the client offer more than revenue? If so, even a small deal may warrant a targeted approach. Alignment can make all the difference to a business.

article thumbnail

Flexible VC, a New Model for Companies Targeting Profitability

David Teten

More and more startups are pursuing Revenue-Based VCs , but “RBI” doesn’t fit everyone. Flexible VC 101: Equity Meets Revenue Share. By tying payments to actual revenues, founders and investors remain aligned around the company’s real-time performance, good or bad. Flexible VC: Revenue -based. Of the Inc.