Step one: verify who else is actually invested in the deal, not just who’s pitching it. Step two: check whether the sponsor is putting their own capital in alongside investors. Step three: ask what happens if the deal underperforms, and get a real answer, not a deflection.
Ticker Tape runs every deal through a lengthy due diligence process and uses more than one person to get second, third and fourth opinions. After 30 years of experience, Tom has seen that the number one reason investors lose money is failing to do due diligence on the actual opportunity. Don’t skip steps.
Key points
- Verify who else is actually invested.
- Confirm the sponsor has their own capital in the deal.
- Get a real answer on what happens if the deal underperforms.
- Skipping due diligence is the top reason investors lose money.
Accredited investors: learn about current opportunities at tickertapeinvestments.com.
