Investor Playbook: Diligence That Actually De-risks
Model cash operating costs, capex per functional output, and sensitivity to input prices. Layer in expected learning rates derived from analog industries. Avoid magical thinking by tying cost-down claims to specific manufacturing changes and credible supplier qualification milestones.
Investor Playbook: Diligence That Actually De-risks
Evaluate accelerated lifetime data, failure modes, and preventive maintenance schedules. Require performance guarantees aligned with lender expectations. Early engagement with insurers and certification bodies can reveal hidden liabilities, saving years of painful retrofits and strained customer relationships later.