Company Evaluation

NCP takes a very detailed and comprehensive approach when evaluating a compay for investment

Needham Capital Partners (NCP) takes a very detailed and comprehensive approach when evaluating a company for investment. This process includes reviewing any and all financial statements, conducting extensive interviews with executive management, and performing detailed research and analysis on the market in which the company competes. Some of the questions we consider during our evaluation process include:

Management Team

  • Is there a capable and experienced management team in place?
  • Are they trustworthy and dedicated to increasing shareholder value?
  • Do they have a track record of success, e.g., have they met their revenue forecasts in the past?
  • Is there a commitment to conducting business in a first-class manner, with unquestionable integrity in all matters relating to customers, suppliers, employees, and investors?

The Business

  • Does the company have and is it implementing a clear and effective business model?
  • Has the company progressed beyond major groundbreaking R&D expenditures on product development?
  • Is there a demonstrated market need for its product or service? Does it offer genuine value to customers?
  • If so, what is the size of the market opportunity?
  • Why is the company seeking capital? Is it for a product or service rollout, to meet working-capital needs, to expand distribution and sales channels, or to make an acquisition?
  • Does the company possess attributes today that will translate into success in the public market?

Corporate Governance

  • Is there a clean, straightforward corporate and financial structure?
  • Is there a capable and independent board of directors, or at least commitment to put one in place?
  • Are our interests aligned with those of the management team and other investors?

Additional Investors

  • What is their value add?
  • Are they experienced, e.g., have they been through both good and bad markets?
  • Do they have a track record of supporting other portfolio companies?
Investment Strategy