Assessing risk and capital efficiency

Client: University in the UK


The client requested CLT to write an investment paper for the investment committee with an analysis of a portfolio business. The paper was to include a commercialisation risk analysis and an assessment of the finance require to reach a value inflection point. They needed a partner to carry out a professional due diligence exercise and offer an external independent opinion.


Based on the comprehensive due diligence analysis performed by CLT, the client were able to make an informed decision on their investment options, secure in the knowledge that all aspects of the situation had been thoroughly examined.

The due diligence process involved analysis of company documents, interviews with the management team, use of a proprietary diagnostics tool, external interviews and detailed business analysis.

Specifically, CLT reviewed the latest company documents such as business plan, conference presentations and recent grant applications. The management team was interviewed at their premises for review of the current position of the business. This meeting included a demonstration of the microchip technology.

During the interviews, CLT used a “Diagnostic Q&A toolkit” to evaluate and provide an independent opinion on key risks. Further desk research and telephone interviews of manufacturers, end users, industry experts were undertaken.

A report was submitted that contained insights on topics such as current progress on commercial relationships and level of interest including value proposition, business model for commercialization, team, key risks identified, what the funds will be spent as well as information regarding exits of similar companies. The report also included a risk register identifying the likelihood, impact and possible mitigation strategies and consideration was given to the question regarding how much funding this business might need before it can raise corporate investment or start to generate income.