Company Points That Investors Consider
Avista Capital Markets
  • Are audited historical financial statements available?
  • What is the current financial position of the business?
  • Is it operating now?
  • Is it making money?
  • If it is losing money, how much money is being lost each month?
  • What is the burn rate?
  • What is the turn-around strategy and who controls it?
  • Has a reputable firm of accountants issued an accountant’s report on the financial statements?
  • Is the venture up to date on tax and other required filings?
  • When is the business expected to become profitable?
  • What is the expected return on investment (ROI)?
  • What is the payback period for the investment?
  • If the business plan is successful, how much will my investment be worth?
  • How will profits be paid out (e.g. retained earnings, etc.)?
  • How does the business compare to industry standards for (1) returns; (2) leverage; (3) and payables and receivables?