The Quiet Red Flag in Due Diligence: Numbers That Don't Agree With Themselves
Investors are trained to scrutinize revenue growth, margins, churn and cash runway. Far fewer pay close attention to how those figures are produced. Yet anyone who has sat through a messy diligence process will tell you the same story: when a management team needs three weeks and four versions of a spreadsheet to answer a basic question about their own business, the problem is rarely just the spreadsheet. How a company assembles its numbers is one of the most honest signals of opera
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