The Science of Rapid Deal Assessment
The science of Rapid or Initial Deal Assessment involves three key steps:
- Preparation of a SWOT Analysis: Identifying strengths, weaknesses, opportunities, and threats.
- Identification of Key Commercial Numerical Assumptions: Focusing on the main drivers of revenue, direct costs, variable costs, and cash flow.
- Preparation of a Broad Financial Model: Creating a financial model that provides a rough yet comprehensive overview.
These steps are executed swiftly, aiming for an 80% accuracy rate to avoid "perfection paralysis" and ensure quick decision-making. Often, some opportunities don't progress beyond the initial steps if a "deal killer" is identified, allowing resources to be redirected to more promising prospects. The philosophy here is simple: the more opportunities assessed, the higher the chances of success.
With over 32 years of experience, Jason Bresnehan has conducted around 200 Initial Deal Assessments in various roles, including venture capitalist, investment banker, consultant, contract COO/CFO, General Manager, and principal of the Bresnehan Family Office.
Experience
Evahan chooses not to publish case studies on Rapid Deal Assessments, as these evaluations often result in a "no-go" or non-proceed recommendation. While this might initially seem unfavorable, such outcomes are, in fact, highly beneficial. They safeguard resources, minimize risks, and enable a sharper focus on viable opportunities.
For insights into Jason's extensive expertise in conducting detailed, thorough due diligence—beyond rapid or preliminary assessments—you can explore more here.
