Due Diligence Process
McCauley provides a comprehensive 3-part due diligence solution that will allow professional athletes to (i) better protect themselves and their investments from fraud and mismanagement and (ii) make difficult, but informed, business decisions with confidence.
Part I - Identify
Investing comes with risks, and to protect yourself and your investment, we'll need to identify those risks. Part I of my due diligence process involves reviewing your business deals and their documents for a variety of risks, such as legal risk, financial market risk, default risk and interest rate risk, and the variables that create this risk.
For business plans I receive, one thing I may look at is the proposed management team. Why is that? Your management team will expose your investment to business risk, such as whether the management team is even capable of reaching the goals and objectives they've set. Have they had several businesses that failed? Do they have the background to successfully manage the business? Have they filed bankruptcy or been involved in any matters in a court system? I'll find out in Part II of my due diligence process.
Part II - Research
After identifying the risks, I'll research the variables creating the risk. To do this, I'll use a proprietary mix of free and subscription-based resources. These resources are on top of the knowledge and skills gained from my work experience as an attorney and a CPA in a variety of industries.
Using the example described in Part I above, I can check a variety of public records to see if any member of your potential management team has a police record, bankruptcy record or competing business elsewhere. After I've done my research, I'll document my findings in a McCauley Report.
Part III - Report
Once Parts I and II are wrapped up, I'll compile the information in a McCauley Report, which, in general, will include the following:
A summary of the identified risks and/or concerns,
An explanation of those risks and/or concerns,
Mitigation strategies to reduce your chances for loss,
My research findings and
An analysis on these findings.
You'll get this information in a professionally prepared package, either by courier service or email. After receipt, we'll set up a time to go over the information to make sure I answer any additional questions you might have about your investment opportunity and the McCauley Report.
Instead of a McCauley Report, you may choose to receive the results of due diligence through:
a telephone conversation,
an in-person meeting, or
Microsoft PowerPoint presentation.