Financial due diligence (Financial DD) is a core part of the assessment that we undertake at Frog during an investment process to ascertain if the company is ready to scale. Finance functions will be at different levels of maturity when we start talking with them and it is important that the assessment is appropriate for the size and scale of the company, the business model and market specific risks.
At Frog, due diligence (DD) is an integral part of our investment process. It is led by our team of Operating Partners, who are part of the Frog team (participating in IC meetings) and provide consistent functional support throughout the life-cycle of our investments.
Our approach to DD is designed to add value in its own right; it is conducted not in isolation but as part of an end-to-end process of collaborative added value.
One of the additional benefits of our approach is that our Operating Partners not only continue working as part of the portfolio company teams post investment, but also that they work closely with each other. This multiplies the value we can add because our work is both end to end, and inter-connected across what can otherwise be separate work streams.
At Frog, the Financial DD is the opportunity for us to evaluate both current position and ability to evolve to support scale-up. More specifically, we are looking to gain a good comfort level to the following:
