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Deal Flow Reports
Market & Geopolitics
: Example Fund Details
information dated 2004
Adaptation of Bell Mason Diagnotic Tool – Questionaire and Illustrative Graphs
The Bell-Mason Diagnostic and Prescriptive method was developed principally to evaluate the chances of success of high tech start-ups. It is intended to offer a quantitative method of evaluation. It is based on over 600 case studies plus personal experience. We have adapted the method for application to other companies in various industries and at various stages of growth. It provides a useful check list for due diligence and company interviews.
The Four Elements
Five stages of company growth
Concept: formalise the idea.
Seed: ensure that technology is under control, product
and market defined, and produce business plan. Seeking funding for nothing
- very difficult.
Market Development: sales, market calibration, market expansion, steady state.
Steady State: systems refinement and strategic planning.
Subsequent cycles of Product Development and Market Development.
We are principally focussing on Market Development/Steady State scenarios. The diagnosis checklist reveals elements of risk throughout the businesses. If unacceptable risks are revealed an opportunity would not be pursued. Normally, risks are clearly identified allowing stakeholders to reduce risk and plan for challenges.
The checklist is comprehensive, covering many dimensions.
Twelve performance dimensions
Arranged into four groups:
Cash/Financeability/Operations and Control
Rules for evaluation
Series of questions answer yes or no or pay now vs pay later. Specific questions that can get yes/no answer. Degree of criticality to success or moving to next stage.
The Diagnostic Checklist
The checklist is provided in spreadsheet format to enable easy use. It is offered in .sxi format (downlaod openoffice.org free).
(A .jpg graphic is given here, but editing this would be difficult.)
Diagnostic chart illustrating different stages of business evolution.
Diagnostic line illustrating different stages of business evolution.