Our Services

STAR Associates, Inc.

The STAR Associates advisory/financing thesis always starts with due diligence based on the transaction success criteria identified by the client. Our due diligence considers equity, convertible debt-equity, debt financing for series “A” and continuation tranche instruments. Investment considerations include JV/Partnerships, non-equity corporate investors with convertible milestone terms and conditions. Exit strategies include IPO, M&A earn out and independent growth planning to strengthen negotiating position.  We see each client as unique and provides specific strategies to ensure the implementation of corporate objectives.

Based on the client objectives, STAR due diligence includes the following topics where applicable.


​​ Business Due Diligence

  • Business overview and corporate strategy
  • Business / product mix / product roadmap
  • Development / R&D
  • Customers  (strategies for current, new and target accounts)
  • Sales organization, incentives, channels
  • Employees
  • Major suppliers
  • Alliances/partnerships
  • Competitive Analysis
  • Organization/management


Financial Due Diligence

  • Historical financials
  • Income statement, Balance sheet and Cash flow
  • Revenue Detail by Customer
  • Detailed review of gross margins and operating expenses
  • Financial projections (including pro-forma income statement, balance sheet and cash flow) and underlying assumptions
  • Future financing requirements / plans
  • Amount, anticipated use, timing, projected structure and sources
  • Capital structure including detailed option and warrant information
  • Accounting/controls/systems
    • Recent significant audit adjustments recommended by auditors (if any)
    • Recent disputes regarding accounting principles  (if any)
    • Collection of receivables; bad debt expense
    • Major planned or potential write-offs/accounting changes
    • Accounts Receivable, Accounts Payable, Inventory, Property Plant and Equipment and Leases
    • Review of capital investment plans
  • Tax and Auditor Letters


​​​Technical Due Diligence

  • Technology roadmap
  • Proprietary (Internal Intellectual Property) product overview
  • Discussion of development methodology
  • 3rd Party Integrated Technologies Product Description
  • Research and development resources
  • Product service and support

Legal Due Diligence

  • Material license agreements and other contracts (for both customers and suppliers)
  • Typical terms and conditions of customer contracts
  • Intellectual property rights
    • Patents (Issued, Pending, Provisional, Licensed, Planned
    • Trademarks, copyrights
    • Proprietary technology/trade secrets
  • Regulatory and Reimbursement review and status
  • Current or anticipated tax liabilities
  • Confidentiality agreements
  • Legal ownership structure
    • Voting provisions
  • Option plans and other employee benefit information
  • Insurance Policies


Other

  • Market and competitive studies
  • Understanding social media exposure, including formal and informal studies
  • Marketing materials
  • Technical reports