Top factors which influence due diligence of an investment process

Prior to reviewing a debtor’s financial statements, keep in mind the industry in which it operates to determine what is the most relevant. Doing this will help you frame due diligence efforts and credit risk assessment.

factors influence investment process

Five Factors to be considered

In 1979, economist and professor at Harvard Business School, Michael Porter identified five forces to consider while developing a business strategy. This five-factor approach remains useful even today.

1. Power of customers

Your primary focus should be understanding the debtor’s market. A company may be at the mercy of key customers since it relies heavily on a few customers. This happens especially when there are multiple competitors in the market and no long-term contracts. This specific factor affects the terms and prices a debtor can negotiate with its customers.

2. Power of suppliers

Now the focus shifts to identifying the companies that a debtor purchases resources and raw materials from. Keep in mind the existence of long-term contracts and possible alternate suppliers, in case the key supplier goes out of business or breaches a supply contract.

3. Competition

Gain knowledge about other companies that sell similar products to the debtor’s customers. Your knowledge should include their pricing, reputation, financial position, market share, and channels of distribution. Afterwards, compare your debtor’s business model with those of its competitors. What factors differentiate your debtor? Is your debtor a follower or market leader?

4. Ease of entry

It is significant to gain knowledge about how much money the start-up needs to participate in the industry. In case, entering an industry requires licensing, compliance with local or federal regulations, or a significant investment in equipment, inventory and property, it lowers the risk of new competitors emerging and taking away market share.

factors influence investment process

5. Product substitution 

Analyse whether there are substitute products that customers could use instead of what your debtor sells. Often, companies overlook alternate products and are blindsided when customers make an unexpected shift in their buying patterns. 

These five factors shall help you frame due diligence efforts and credit risk assessment. To know more, visit LINQQ

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We all have thought, at least once in life, to do a fun and exciting job. However, these thoughts remained shut in our heads with a heavy lock of future prospects on them. We all deserve a job which makes sure that we wake up every morning with a smile and look forward to the work. A typical nine to five routine does not let us do so. It is a popular misconception that unusual jobs don’t pay well and cannot be converted into a career. Consequently, we get engrossed in the rut of earning a living through the work we don’t enjoy. To help you out here, the following are the top unusual jobs that pay surprisingly well and can be taken forward as a full-time career.

• Voice-over Artist: This career is perfect for people who like making funny, weird voices. If people enjoy listening to your melodious voice and ask you to give motivational speeches, you can get a job solely based on those attributes. You can start working as a voice-over artist and work in cartoons, advertisements, radios, films, television programmes, etc. You can get a payment of 25,000 to 50,000 for a film, 15,000 to 20,000 for a short film, documentaries or corporate films and 5,000 to 8,000 for TV programme episodes and advertisements.

• Ethical Hacker: If you have efficient hacking skills, there are a plethora of ways of using them. These skills can be proven much more than just having fun troubling your friends with your expertise. You can become a professional hacker and earn money through your knowledge of cracking codes. To become an ethical hacker, a Bachelor’s degree in IT or Computer Science is required. Hacking as a career can make you earn up to 3 to 3.5 lakh per annum, approximately.

• Wine Taster: This counts to be a dream job for everyone! Working as a Wine Taster, you should be able to tell the distinct palettes of a wine, where it comes from, its history, whether it’s a ‘composed wine’ or a ‘wine of place’, and more. Monthly salary of the same can start from 10,000 and go up to 50,000 with some experience.

• Personal Shopper: This is a dream job for people who love fashion and consider it as a therapy. Although you don’t require a specific degree to become a Professional Shopper, it will be beneficial for you if you have a qualification in styling or fashion. The job requires you having knowledge about different body types, power dressing, how to hide negative attributes and emphasize the positive ones. You can easily make a living of up to 40,000 per month. However, the sky is the limit if you go into luxury shopping.

• Blogger: Blogging is a hobby of a lot of people, but it has a lot more potential than you think. No qualification is needed for professional blogging, quirky ideas, and flair with words. You just need to decide on what topic you want to start your blog on, understand your target audience, a definite idea about your research and what keywords to use. The top bloggers nowadays easily earn between 2 to 30 Lakh per month. As a fresher, you may start with 10,000 to 20,000 per month.

Thus, it’s time to get out of your typical nine to five jobs and give a chance to your life and to these unusual jobs!


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What to look for in your first job out of college

What to look for in your first job out of college

The first job is not all about salary. There are many other factors you need to consider while looking for your first job.

The 5 major factors that you must consider when looking for your first job are as follows:

  1. Experience

While stepping into this new world, the most important thing you can do is gain experience as much as you can. Even if you are lucky enough to get your first job in your desired field, you won’t be in the same position forever. To move forward, it’s significant to have a variety of experiences.

While deciding on accepting a position, consider the type of experience you will gain. Also. Keep in mind that no matter what direction your career goes, it’s harmless to develop skills in multiple areas.

2. Advancement Potential

Look for advancement opportunities within a company: Is there a chance of promotion after you’ve been there for a few years? Is there a possibility for you to apply for a position internally?

It’s the easiest to get promoted within the company rather than looking for advancement someplace else.

3. Benefits

Looking into the salary factor only will not help. There are other benefits added to the package that needs to be considered. Usual employee benefits include health insurance, paid time off, and sick leave.

4. Company History

This may seem like an odd factor, but a company’s history can help you understand much better about the company. Research about how the company has been doing in the last few years to understand if you have to worry about keeping the job once you have it. If the business has recently expanded through branches or departments, that’s a good sign.

5. Environment

You are going to spend the majority of the time in the day in the office. Thus, you need to enjoy your time there. While appearing for your in-office interview, consider how it will be like working there. 

Always think realistically about the type of job it is. Consider the amount of satisfaction you will experience while working there.

Finding your first job is thrilling and can take nerve-wracking time. However, with these helpful factors, you will surely be able to make way for a bright career future.


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What HRs actually mean and want to hear when they ask these questions

What HRs actually mean and want to hear when they ask these questions

Getting through an interview could be a little tricky at times. As you have certain expectations from the company,

they also have a few expectations from your end. Whether you will be able to fulfill those, is analyzed during your interview.

Thus, it is significant to prepare well before going for an interview and understand how you must answer to live up to the expectations of the employer.

Listed below are the aspects of employer expectations that one will be interested to hear from you.

  1. Are you competent?

This is the primary aspect that every employer looks for even before starting with the interview. This factor is based on your educational skills.

Additionally, it is important to understand the job description for the post you have applied for. It will be easier for you to handle the interview in this way.

  1. Do you understand what has been asked?

Once the interviewer has posed a question or problem, they will analyze if you have understood what has been asked for.

Do not throw arrows blindly. If you are not clear about the question, request for re-phrasing to get a clearer picture.

  1. Can you communicate?

The question is posed. You think and start communicating.

Even if the answer is not up to the mark, try to keep it in simple words. Through your answer, they will analyze how you are going to answer your colleagues and boss.

  1. Are you open to learning?

Employers will put up a question and from answers at your side, it will be analyzed if you are a learner as well or not.

  1. Can you adjust?

The job environment changes from place to place. Thus, you need to make adjustments to be able to adapt to the environment around you.

During the interview, it will be analyzed as well that if you will be able to adjust to the environment. This would be deciphered through their questions. For instance, they will ask whether you will be willing to take up a task for a small period of time or will you be able to come at a particular time.

  1. Are you committed?

This is the eagerness to prove and work even if it takes to go that extra hour. You must have witnessed such commitments during academics. 


Thus, buckle yourself up by having a look at these points and rehearse in your head about the questions you can face and their answers. In this way, you will surely come out of that room with flying colors. 

Most importantly, take a positive approach and go ahead with a positive mind. Even if you don’t get through this one, overcome it and go for others. As they say, there is a time for everything.


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