TF Investors Investment Risk Gauge

Company:

EBITDA+

Date:

1) Execution (Operating System)

The company/organization is not running on EOS.

The company/organization is attempting to self implement EOS.

The company/organization is professionally implementing EOS.

The company/organization is rolled out EOS to all levels or has "graduated".

2) Market

The market that the company or organization is serving is shrinking.

The market that the company or organization is serving is stagnant.

Growth will require taking market share from others, market consolidation opportunities exist.

Market is large and growing and no single competitor has majority share or the prospect is the largest player opportunities exist.

3) Product

The product or service is not unique or defensible. There are very low barriers to entry with many competitors. The company is pre-revenue.

The product or service is not unique or defensible. There are many competitors and the barriers to entry are low. The company has beta customers.

The product or service is somewhat unique in the market place with a few competitors that can match. The barriers to entry are relatively high. The company has referenceable customers, but has not yet generated meaningful up sale or repeat sales.

The product or service is completely unique and not easily copied. There are very high barriers to entry. The company has many customers that make repeated purchases and are happy.

4) Management

The team is completely dysfunctional with no relevant experience. They are not open and honest. They are weak individually and as a group. It is clear that they are not willing to become their best.

The market that the company or organization is serving is stagnant.

Growth will require taking market share from others, market consolidation opportunities exist.

Market is large and growing and no single competitor has majority share or the prospect is the largest player opportunities exist.

5) Business Model

The company/organization is not growing nor is it generating EBITDA.

The company/organization is growing at a moderate rate and not generating EBITDA or is not growing and generating moderate EBITDA.

The company/organization is growing at a high rate and not generating EBITDA or is slightly growing and generating moderate EBITDA.

The company/organization is growing at a high rate and generating EBITDA or is moderately growing and generating significant EBITDA.

6) Regulation

The business operates in a market that has been created by governmental action. Any significant change in regulation may put the firm out of business.

The business operates in a heavily regulated industry. Any changes in regulation could impact the ability for the firm to operate in a profitable manner.

The business operates is a mostly unregulated industry but has no plan to address potential risks. In the event of regulatory change, there would need to be business model changes.

The business operates is a completely unregulated industry.

7) Capital

The financing requested is insufficient to reach any milestones that would warrant additional investment and significant outside capital would be required.

The capital needed exceeds that being raised from this financing and the reserves of the syndicate, a new investor would be needed to lead next round.

Financing combined with reserves of syndicate fully funds business plan.

Financing fully funds business plan / EOSi is looking to co-invest.

Total Score:

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