Minds Capital Investment Checklist
www.mindscapital.co/checklist (URL isn't public yet)

4 Sections:
 Market
 Target
 Sponsor
 Deal

Likert Scale 
Across the 4 sections you will be asked whether you strongly disagree, disagree, neither disagree nor agree, agree, or strongly agree on a range of items. Your responses to these questions will give you a total score at the end, and it will also illuminate what we call the green, yellow, and red flags about your deal:

Disagree = ⚠️ (yellow flag)
Strongly disagree = 🚩 (red flag)
✅ = Scoring-wise this counts the same as "Strongly agree", but if you click the green checkmark instead of "Strongly agree" it will appear as one of your green flags on the dashboard. So, use the green checkmark selectively for the key points that make you feel especially excited about this deal. 
n/a = When you don't have sufficient information.

Survey consists of:
  • 4 sections w/ Likert scale: approximately 20 questions in each section
  • Miscellaneous other questions
  • Commentary field for general conclusions, notes, concerns, etc.
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Who is completing this form?
Clear selection
What is the industry? 
Clear selection
What is the name of the target company? (Use a code name if anonymous) *
What is the name of the (main) sponsor/searcher?  (No need to answer if anonymous)
Is this deal under LOI? *
What is the EBITDA of the target company? *
What is the EBITDA multiple (please answer with one digit after the decimal point: e.g. 5.3x)? *
Assessment of the target's market/industry *
Strongly disagree
Disagree
Neither disagree nor agree
Agree
Strongly agree
✅
n/a
Large TAM
Growing industry
ESG-friendly
Highly predictable
Attractive end-customer
High barriers to entry
Low regulatory risks
No industry headwinds
Not cyclical
Not commoditized
Not a bubble
No supply chain exposure
Not winner-takes-it-all
Won't be disrupted
Lots of add-on M&A opportunities
Not seasonal
Not going away
There's space to win
Not threatened by AI
Assessment of target company *
Strongly disagree
Disagree
Neither disagree nor agree
Agree
Strongly agree
✅
n/a
Predictable revenue
History of profitability
No concentration issues
Seller has legitimate cause to exit
Multiple ways to grow EV
Quality management already in place
Margins that can sustain or improve
Highly differentiated
No vendor dependencies
Clear exit potential
Capex-light
Moat
Not project-based
Not relationship-driven
History of revenue growth
Geography is not concerning
Market leader
Easy to understand
Consistent, high margins
High quality products/services
Irreplaceable for customers
No key people risk
Assessment of sponsor/searcher *
Strongly disagree
Disagree
Neither disagree nor agree
Agree
Strongly agree
✅
n/a
Strong credentials
Vertical industry expertise
Mature & realistic personality ("with it")
Aptitude to overcome adversity
Good drive & lots of initiation
Clear sense of direction
Mindset of exiting in ~5 years
I wouldn't mind being stuck at an airport with this person.
I'd like to work with this person.
Excellent investor relations skills
Previous leadership experience
Previous M&A experience
Resourceful
Well-connected
Strong people mgmt. skills
Totally committed
Slick materials
Thorough due diligence
Reflective (not sales-y)
Total conviction
Gravitas (executive presence)
Ideal buyer for this target
Makes me sleep easy at night
Trustworthy
Previous exits (>20% net IRR)
Specialized
Strong references
Assessment of the deal itself *
Strongly disagree
Disagree
Neither disagree nor agree
Agree
Strongly agree
✅
n/a
Good valuation (entry multiple)
Good deal structure
Sponsor has skin in the game
Debt level is sustainable
Sufficient net working capital
Good list of investors/advisors
LP terms are good
Strong Board of Directors
Financial model = High integrity
Not a "bad taste in my mouth"
Reasonable closing costs
Transparent
Not worrisome that there isn't a more obvious buyer
5x+ MOIC is absolutely plausible
Hard to imagine it going to zero
Robust governance plan
No reputational risk to Minds
Market value is higher than purchase price
Fits our size range
Won't require more capital
Organic strategy for >30% IRR
Commentary field and general conclusions, notes, concerns, etc.  What information do you need to continue your diligence? 
 *
How likely is it that you would recommend this opportunity to a friend or colleague? *
Lowest
Highest
Does this deal have the hallmarks of being "the best deal we'll see this month"? 
Clear selection
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