Investment selection process

The investment selection process involves a detailed analysis of technology, target market and accounting, legal and tax aspects of the investment opportunity. It is quite a demanding process, both for the company and the investor, but is essential in order to obtain mutual knowledge and often very helpful in leading the company to the next stage of development.

The investment selection process may involve several professionals in different activities in order to analyse in depth the following items:

• Technology and market:
• Product analysis
• Market analysis, vision and competitive positioning assessment
• Development roadmap check-up and milestones.
• Customer feedback and commercial pipeline:
• Offers, negotiations and order pipeline
• Demonstration of customer interest and feedback.
• Company’s organization:
• Commercial partnerships
• Management and organization chart.
• Business plan review:
• Assumption analysis, business model validation
• Scenario analysis (worst case, best case) and risk analysis.

As a result of this process a selected investment opportunity undergoes the full due diligence analysis, aimed at pinpointing legal, fiscal or accounting risks.

The Innogest SGR management team carries out the main activities of the investment selection process, while specific professionals are appointed to perform a rigorous legal, fiscal and accounting due diligence.

The average lead time from the first meeting to the investment closing is about 3 to 4 months, during which Innogest SGR’s management team works closely with the entrepreneur and his staff.