Publication detail

Due Diligence Process in the Context of Private Equity and Venture Capital Financing in the Czech Republic

RAJCHLOVÁ, J. ZINECKER, M. BROŽ, Z.

Original Title

Due Diligence Process in the Context of Private Equity and Venture Capital Financing in the Czech Republic

Type

journal article - other

Language

English

Original Abstract

The objective of this research is to define the Due diligence process in the context of Private Equity and Venture Capital financing in the Czech Republic and other countries. The findings of this research are based on the results of primary and secondary research. Due diligence has a serious impact on the decisions of investors because it helps investors to discover hidden risks and find true potential of the new investment which was previously not known. The data for this research was obtained from primary and secondary research. The primary research was conducted through personal and phone interviews with PE/VC investors in the Czech Republic. Secondary research was conducted by collecting information relevant to PE/VC from scientific journals and other published materials. Scientific analysis, synthesis, induction and deduction were used in this research. Due diligence in Czech Republic is based on different criteria than for example in Germany according to (Eisele, 2002). For example the investor has different requirements on the management and investments are focused differently than abroad. Due diligence is a valuable help for investors and decision makers. Because Due diligence can be expensive and can require significant amount of time it is not widely used by investors. Yet PE/VC investors use it often to discover opportunities with high potential for future growth because these opportunities are risky and need to be analyzed better. Generalization of the Due diligence process is clearly positive for the managers who would like to get additional resources by means of PE/VC financing. It is very important to understand how investors evaluate the investment proposals.

Keywords

venture capital, private equity, decision making, due diligence

Authors

RAJCHLOVÁ, J.; ZINECKER, M.; BROŽ, Z.

RIV year

2012

Released

12. 3. 2012

Publisher

VŠB

Location

Ostrava

ISBN

1803-3865

Periodical

Econ... Vysoká škola báňská -Technická univerzita Ostrava AH AE

Year of study

2012

Number

1

State

Czech Republic

Pages from

15

Pages to

23

Pages count

8

BibTex

@article{BUT90130,
  author="Jaroslava {Rajchlová} and Marek {Zinecker} and Zdeněk {Brož}",
  title="Due Diligence Process in the Context of Private Equity and Venture Capital Financing in the Czech Republic",
  journal="Econ... Vysoká škola báňská -Technická univerzita Ostrava AH AE",
  year="2012",
  volume="2012",
  number="1",
  pages="15--23",
  issn="1803-3865"
}