99 Proof Due Diligence Process

Our Team works relentlessly to bring the best brands to the greatest success. We perform thorough diligence to assess the viability of each investment opportunity as defined below:

STAGE 1: Collect / Gather Information for Initial Assessment 

99 Proof requests and aggregates all/initial information in Google drive folder for a brand. 

  • Intro call with Founder / Team

  • Create Drive Folder and add below items:

    • Pitch Deck

    • Financials - Historical & Pro Forma Statements

    • Investment Terms

  • Request Product for Review / Testing / Assessment

Review: After a review of shared info from the brand, decide if brand moves to Stage 2.

  • Review information provided

  • Approve further diligence or reject the deal

 

STAGE 2: Consolidation & Review of Data

99 Proof team members dive into the materials provided by the Company

  • Request expanded Data Room with 99 Proof Due Diligence Checklist from Brand

  • 99 Proof Partners review all materials

Review: After a review of shared info from the brand, decide if brand moves to Stage 3.

  • Review and choose path for deal: Move to Diligence (Stage 3) or Pass on deal

 

STAGE 3: Aggregate & Analyze the Data

99 Proof team begins to compile key data, identifying pros and cons, and report gaps in our analysis/information needing clarification.

  • Create Brand Assessment Document (Working) from Google Doc Template

  • Aggregate Key Information: Identify what we need to know, and what we need to share with investors by starting to aggregate key data into an assessment document.

    • Add bullet points/content of key information from all documentation provided by the brand within each assessment category as a centralized document for key information.

    • Research Market Comps and Industry Segment

    • Team review and connecting

  • Financial Analysis: As above, consolidate financials and review to identify a worthwhile investment, initial diligence on the numbers, and highlight pros / cons / gaps for initial coverage.

    • Aggregate all excel docs into one 99 Proof Financial combined sheets

    • Add Valuation and Assessment tabs

    • Complete Ratio Analysis on New Tab

    • Complete P&L Revenue Ratios on P&L tab

    • Link P&L on Valuation Tab to assess valuation

    • Review comparable valuations for guidance

    • Revenue Analysis by product and/or Geography

    • Marketing and Operations Viability

    • Analyze for anomalies and red flags within financial assumptions

    • Record key financial metrics in assessment document

  • Identify Pros / Cons: Copy and paste all good and bad info to summarize / highlight categorically as we have defined within our rating assessment in Assessment Document

    • Assess positive and negative elements of key information for each category

    • Record as comments or sub-points within each key item bullet point

  • Identify Gaps / Questions: Once key elements are known, build questions / information requests within the Pros/Cons lists in each category to help organize these needs/questions.

    • Combine questions for follow on request to Brand

    • Combine additional information requests for Brand

  • Data Request / Follow Ups: Conduct phone call to request additional docs to refine our data, increase knowledge, and secure all information needed to be confident in investing or passing.

    • Share questions and additional information needs with Brand

    • Schedule call for follow up information / clarification / next steps

  • Services Assessment:

  • Iterate: Continue to repeat until diligence is complete.

Review: Assess the consolidated information and financials to move to Investor Level or pass on deal. If a Partner, during diligence, has concerns regarding the deal, Partners shall convene and assess to finish diligence or pass at any time.

  • Assess deal when diligence is complete

  • Decide on investment level commitment to Brand

STAGE 4: Assessment -> Investment 

Once details are organized, 99 Proof formalizes and assess the deal, including the value proposition for investors. The deal will soon go live.

  • 99 Proof Assessment Document (Final): Formal document cleaned up from the Aggregate in Stage 2 for investors

    • Copy Diligence Assessment doc, start cutting and cleaning for final presentation

  • Rating: Complete 99 Proof Rating. This builds a diligence track record and support rejected deals with investors.

    • Each Partner must complete individual Brand rating

  • Financials: Clean up Financials for investors to review

  • Term Sheet: Depicts investment offering and requirement from investors

    • Compare 99 Proof’s documents to the Company’s offering documents to ensure the terms match those that govern the round in the Company’s documentation set

  • 99P Data Room: Decide and populate what the 99 Proof Data Room to investors will be in document repository software

  • SPV Docs: Formalize / file SPV documentation and share with investors via document repository software

  • Bank Account: Set up new SPV bank account, if applicable

  • Investors: Document investment via investors

    • Track SPV docs for Accounting

    • Finalize Cap Table, dates, etc.

    • Return signed documents to investors

    • Close Round and notify investors