Due Diligence

The eXtensible Business Reporting Language, a standardised digital format for the exchange and analysis of financial and business information. XBRL is mandated by regulators in many jurisdictions for filing financial statements and enables automated analysis of intangible asset disclosures, impairment charges, and productivity metrics across large datasets.

A reduction in the reported value of an asset on the balance sheet, typically triggered by impairment testing that reveals the asset's carrying amount exceeds its recoverable amount. Goodwill and other intangible asset write-downs often signal that the expected future benefits from a prior acquisition or investment have not materialised.

An admission document is the disclosure document a company publishes when it joins AIM and no prospectus is required. It is the main record on which investors assess the company at admission, and its contents follow the AIM Rules.

Historical financial information is the past-period financial record a company includes in a prospectus or an AIM admission document when it seeks admission to a public market. It normally covers the last three financial years, or the period since incorporation if that is shorter, and it is either audited or reported on, so that investors can rely on the track record behind the offer.

A management presentation is the session, and accompanying deck, in which the leadership of a business being sold presents it to a serious buyer during due diligence. It goes beyond the information memorandum: management talk through the strategy, the numbers, the customer base, the team and the growth plan, and answer the buyer's questions directly.

A nominated adviser, usually shortened to Nomad, is the corporate finance adviser that every company on AIM, the London Stock Exchange's market for growing companies, must retain at all times. A Nomad must itself be approved by the London Stock Exchange to act in the role, and AIM's regulatory model relies on it to act as a gatekeeper for the companies it advises.

A legally binding contract that establishes confidentiality obligations between parties sharing proprietary information. NDAs are essential tools for protecting trade secrets and other sensitive intangible assets during due diligence, partnership discussions, and employee onboarding.

A reporting accountant is the independent accounting firm a company appoints to report on its financial information and financial procedures during an IPO. The role is distinct from the statutory audit.

AI Due Diligence Framework for Private Equity

How do private equity firms use intangible asset analysis?

PE firms use intangible asset analysis for deal screening, due diligence, value creation planning, portfolio monitoring, and exit preparation — identifying hidden value and targeting specific intangible asset improvements.

How do venture capital investors evaluate your pitch?

VCs evaluate pitches across five dimensions: team (credibility, track record), technology/product (defensibility, strength), market (size, growth, timing), business model (unit economics, scalability), and traction (customer, revenue, engagement).

What is an exclusivity period in M&A and how does it differ from a term sheet no-shop?

An M&A exclusivity period prevents the seller from soliciting or engaging with other buyers, typically lasting 30-90 days from LOI signature, longer than VC no-shop clauses.