Our Strategy | The Kandeo Method
The two most important procedures are the selection of investments and the operational follow-up process. The investment selection process involves the Knowledge Office team, in particular the business evaluation division, the investment executives and the Investment Committee.
Kandeo has various, non exclusive, deal sourcing agreements with the most prestigious Investment banks in Mexico, Colombia and in selected countries in the Americas. Additionally deals come from Industry Chambers, private industry organizations as well as analysis of government research studies.
Once and investment opportunity has been identified and contact with their management has been made, the Knowledge Office proceeds to create the company profile and uploads it on to Kandeo’s proprietary Web based system which was created with the support of one of the most respected IT companies in the region.
The Web based business analysis system is divided into the following four stages:
Kandeo Go no Go
The first stage, Kandeo Go no Go is a list of questions to initiate the analysis and viability process of a determined project. An example is given below:
Deal Id
The second stage refers to the identification and classification of a possible investment. It assigns responsible parties, times and the size of the investment.
Deal Assessment
The third stage, Deal Assessment, includes a more detailed analysis of the results, strengths and weaknesses of the company as well as growth projections and a preliminary valuation.
Due Diligence
The fourth and last stage is a detailed analysis of each and every one of the business areas: Management, Market, Marketing, Operations, Technology, Finance, Legal and Accounting, as well as the analysis of the exit strategy.
First and foremost in order to move from one stage to the next, it is necessary for all requirements to have been fulfilled in a satisfactory manner.
With respects to the operational follow-up process, Kandeo assigns a fully dedicated Kandeo manager to the acquired company that will be responsible for generating daily, weekly and monthly key performance indicators reports and uploading them to the web based system for the other Kandeo Members and investors to follow up.