How Ready Is Your Company in an Investor’s Eyes? Know Your Score, Increase Your Value
Looking to raise capital or bring a new shareholder into your company? Investors assess a business against dozens of criteria long before they sit down at the table. Approaching them unprepared costs time and, more damaging, costs valuation.
At Anatrica Partners we have analysed data from thousands of companies worldwide. By identifying what the businesses that raise capital fastest have in common, we developed an evidence-based Investment Readiness Score methodology.
8 Key Points That Determine Your Score
Financial Performance and Profitability
Operating margin, net profit margin, EBITDA trend, revenue growth and return on equity (ROE). This is the first area an investor looks at and the most heavily weighted in the score.
Growth Potential
Domestic and international growth opportunities, addressable market size (TAM/SAM/SOM), the new product and service pipeline, export potential and strategic expansion options.
Operational Efficiency
Receivable and payable turnover, inventory turnover, the cash conversion cycle, capacity utilisation and the standardisation of operating processes.
Cost Structure and Control
Optimisation of production and selling costs, control of general and administrative expenses, economies of scale and the potential for cost reduction.
Management and Corporate Governance
Organisational structure and depth of capability, founder dependency risk, board composition, the maturity of strategic planning and how decisions are made.
Financial Reporting and Transparency
Quality and consistency of financial reporting, reconciliation between statutory accounts and management accounts, audit status, the separation of shareholder-related items and readiness to open a data room.
Technology and Digital Maturity
ERP and CRM infrastructure, the level of digital transformation, degree of automation, data analytics capability and cyber security maturity.
Market Position and Competitive Advantage
Market share and its direction, customer diversification and loyalty, brand recognition, competitive differentiation, barriers to entry and defensible advantages.
How Our Investment Readiness Score Process Works
Initial Discussion and Scoping
We get to know your company, your sector and your objectives, and we define the parameter set best suited to scoring your business.
Data Collection and Analysis
We review financial statements, operating data, organisational information and strategic documents, and hold in-depth sessions with the management team where needed.
Scoring
We score the business in detail across eight core areas and more than fifty sub-criteria, calibrate for sector and company size, and arrive at the final Investment Readiness Score.
Detailed Report and Roadmap
You receive a full report with a separate score for each category, the strengths it rests on, the areas that hold it back and concrete recommended actions.
Score Improvement Programme (Optional)
We start improvement work in the lowest-scoring areas, put operational, financial and structural recommendations into practice, and re-score the company at agreed intervals.
A Real Case
The situation
A 30-person B2B software company based in Istanbul had been looking for an investor for two years. It had met a number of investors without reaching a deal, and the founders could not understand why no one was committing.
Anatrica Partners Investment Readiness Score
Initial score: 47/100 (extensive preparation required)
- Financial performance: 72/100 – strong (healthy revenue growth)
- Growth potential: 81/100 – very strong (large addressable market)
- Operational efficiency: 35/100 – weak (long cash conversion cycle)
- Management and governance: 28/100 – very weak (founder dependency)
- Technology infrastructure: 65/100 – moderate (no ERP in place)
After a six-month improvement programme
- A CFO was appointed and financial reporting was standardised
- Middle management was strengthened and founder dependency reduced
- The cash conversion cycle was cut from 45 days to 22
- An ERP system was implemented and processes automated
New score: 78/100 (strong candidate)
What does your score mean?
Score band 85 - 100
Investment ready
Your company is highly attractive to investors. The process can begin immediately, with a strong valuation and a fast close in prospect.
Score band 70 - 84
Strong candidate
Your company is close to raising. A few improvements can take the score to the top band. One to three months of preparation is recommended.
Score band 50 - 69
Development needed
The potential is there, but critical areas must improve first. A three to six month improvement programme is recommended.
Score band 30 - 49
Extensive preparation
Your company is not yet ready for investment. A six to twelve month transformation programme is required.
Score band 0 - 29
Fundamental improvement
Core operating issues need to be resolved first. A strategic restructuring is recommended.