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The
Morgan Group New Opportunity Assessments
We have a process for evaluating new opportunities that
is based on the best practices from the Venture Capital Community. An example of an evaluation
scorecard is below.
Criteria
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Weight
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Score
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Wtd.
Score
|
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1.
Current Sales
|
1.0
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|
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2.
Profitability
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1.25
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3.
Gross Margin
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1.0
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|
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4.
Industry Risk
|
1.0
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5.
Competitive Advantage
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1.0
|
|
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6.
Competition Intensity
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0.5
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|
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7.
Projected Growth Rate
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1.0
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|
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8.
Investment Opportunity
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1.0
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9.
Barriers to entry
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0.5
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|
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10.
Product or Service differentiation
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1.25
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|
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11.
Management
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2.0
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12.
Working Business Model
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2.0
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13 Fatal flaws
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(1.0)
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Total Score
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Assign a rating for
each category. Multiply by the
weighting, and sum the column.
Score:
q
<40: Drop it
q
40-45: Examine Further
q
45-50 Probably a good
candidate, go to next step in process
q
>50 Do
the deal
An explanation of the rating
for each category is here
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125 Poppasquash Rd
Bristol, RI
02809
617-592-8379 V
401-254-9684 F
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