Investment Due Diligence Analyzer
Analyze investment opportunities with systematic financial due diligence and risk frameworks
What You Can Do
You'll systematically evaluate investment targets by uploading financial statements and deal documents, then Claude extracts financial assumptions, identifies inconsistencies and red flags, models valuation scenarios with sensitivity analysis, and synthesizes findings into clear decision frameworks. Instead of manually building analysis from scratch, you get a repeatable system that validates assumptions, challenges seller narratives, and flags risks before they reach your investment committee.
Features
Automatically pulls key metrics from P&L, balance sheets, and cash flow statements, then questions underlying assumptions and identifies inconsistencies
Detects anomalies like unusual revenue concentration, margin compression, customer churn patterns, and accounting treatments that warrant deeper investigation
Builds base case, bull case, and bear case valuations with sensitivity analysis on key drivers (EBITDA multiple, growth rate, discount rate)
Structures financial, operational, commercial, and legal risks into a standardized framework for consistent evaluation across deals
Analyzes earn-out mechanics, clawback provisions, seller financing, and working capital adjustments to model true economics
Cross-references seller claims against industry benchmarks, historical performance, and peer comparables to validate or challenge key inputs
Synthesizes analysis into a decision-ready summary with key risks, valuation range, and clear recommendation language
Example Output
Example 1: Financial Red Flag Detection Input: SaaS company P&L showing 40% revenue growth but declining gross margins
Output:
- Red Flag: Gross margin compression from 72% to 68% despite scale
- Possible Causes: (1) Price competition in new segments, (2) Mix shift to lower-margin products, (3) Increased CAC/implementation costs
- Validation Needed: Customer acquisition cost trend, net retention by cohort, pricing changes YoY
- Impact on Valuation: If margin compression continues, 10% discount to base case DCF
Example 2: Valuation Sensitivity Analysis Input: Target valued at 8x EBITDA ($50M), seller claims 25% growth
Output:
Valuation Bridge Analysis:
- Base Case: 7x EBITDA × $8.2M = $57.4M (assumes 18% growth, margin stabilization)
- Bull Case: 9x EBITDA × $9.1M = $81.9M (25% growth, 100bps margin improvement)
- Bear Case: 5x EBITDA × $7.2M = $36M (10% growth, 200bps margin compression)
Sensitivity: $1M change in EBITDA = $7-9M valuation impact
Conclusion: 8x asking price is 14% above base case; negotiable at 7x
What's Included
- SKILL.md: Complete due diligence analyzer system prompt and methodology
- Financial Statement Analysis Template: Checklist for extracting and validating P&L, balance sheet, and cash flow metrics
- Red Flag Assessment Framework: Structured checklist covering financial, operational, and commercial risk categories
- Valuation Modeling Workbook: DCF and multiple-based valuation templates with sensitivity tables
- Investment Committee Memo Template: Executive summary format for presenting findings and recommendations
Who It's For
- Corporate Development Managers — Leading M&A and investment evaluation processes
- Investment Committee Members — Reviewing deal analysis and making capital allocation decisions
- Private Equity Associates — Conducting initial due diligence on potential platform or add-on acquisitions
- Strategic Finance Teams — Supporting business unit leadership evaluating minority investments or partnerships
- Growth Equity Analysts — Screening early-stage or scaling investment opportunities
Best For
- M&A deal screening and initial due diligence on acquisition targets
- Financial statement analysis and red flag identification in investment documents
- Valuation validation and multi-scenario sensitivity modeling
- Deal structure evaluation and true economics modeling
- Investment committee decision memo preparation and risk summarization
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