Preparing the published article.
Due Diligence Before Buying from a Young Company
How to take the technology without taking all the risk.
Check
- Who owns the core technology and whether it is licensed.
- Units in commercial operation, and for how long.
- Spare part strategy for the next five years.
- Whether source code or escrow arrangements are possible.
- What happens to support if the company is acquired.
Structure the risk
| Risk | Tool |
|---|---|
| Company fails | Escrow, pre-purchased spares |
| Roadmap slips | Buy the current version, not the promised one |
| Key staff leave | Written procedures and training |