Quality Control Checklist for Initiation Reports

Before delivering an initiation report, verify all items below are complete.

Critical Minimums - Reports Must Meet These

CRITICAL DO NOT DELIVER IF:

• ❌ DOCX report fewer than 30 pages → INCOMPLETE
• ❌ Fewer than 25 embedded charts → INCOMPLETE
• ❌ Fewer than 12 comprehensive tables → INCOMPLETE
• ❌ Fewer than 10,000 words → INCOMPLETE
• ❌ No XLS financial model → MISSING DELIVERABLE
• ❌ Charts are text descriptions, not actual PNG/JPG files → MAJOR FAILURE

Deliverables Checklist

• [ ] DOCX report file created
• [ ] XLS financial model file created
• [ ] Both files named properly: [Company]_Initiation_Report_[Date].docx and [Company]_Financial_Model_[Date].xlsx

DOCX Report - Length & Content

Length Verification:

• [ ] Report is 30-50 pages (count pages in final document)
• [ ] Word count is 10,000-15,000 words
• [ ] If under 30 pages: STOP and add more content

Visual Elements:

• [ ] 25-35 charts embedded (count them: _____ charts)
• [ ] All charts are actual PNG/JPG image files (NOT text descriptions)
• [ ] 12-20 comprehensive tables included (count them: _____ tables)
• [ ] Charts and tables interspersed throughout, not grouped at end

Chart Requirements:

• [ ] Revenue by product chart: Stacked Area format ✓
• [ ] Revenue by geography chart: Stacked Bar format ✓
• [ ] DCF sensitivity: 2-way Heat Map with color coding ✓
• [ ] Valuation football field: Horizontal bar chart ✓
• [ ] All other charts are actual image files ✓

Table Requirements:

• [ ] Full Income Statement (40-50 rows) with 5 years historical + 5 years projected
• [ ] Full Cash Flow Statement (30-40 rows)
• [ ] Full Balance Sheet (35-45 rows)
• [ ] Revenue by product table (20-30 rows)
• [ ] Revenue by geography table (15-20 rows)
• [ ] Revenue by channel table (10-15 rows)
• [ ] Comparable companies table with statistical summary (max/75th/median/25th/min)
• [ ] DCF calculation table (30-40 rows)
• [ ] WACC calculation table (8-10 rows)
• [ ] Two sensitivity tables
• [ ] 2-3 additional financial/competitive tables

DOCX Report - Structure

Page 1 Requirements:

• [ ] "INITIATING COVERAGE" header present (NOT "Company Update")
• [ ] Thesis-focused title (NOT event-driven like "Strong Q4 Results")
• [ ] Rating box with rating, price, target price, 52-week range, market cap, EV
• [ ] 3-4 paragraph-length bullets with ■ character and bold headers
• [ ] Financial & valuation metrics table with 2-3 years historical, 2 years projected
• [ ] Table shows "A" suffix for actuals, "E" suffix for estimates
• [ ] Source lines on all visuals

Content Sections:

• [ ] Table of Contents (Page 2)
• [ ] Investment Thesis & Risks (3-5 pages)
• [ ] Company Overview (6-12 pages) including:
• [ ] Company description
• [ ] History and milestones
• [ ] Management bios (300-400 words EACH for 3-4 executives)
• [ ] Products/services detail
• [ ] Competitive landscape
• [ ] Financial Analysis & Projections (10-15 pages)
• [ ] Valuation Analysis (8-12 pages)
• [ ] Assumptions section (2,000-3,000 words documenting ALL projection assumptions)
• [ ] Scenario Analysis (1,500-2,000 words with Bull/Base/Bear parameters)
• [ ] Appendices including Data Sources & References page

DOCX Report - Formatting

Figure & Table Formatting:

• [ ] Every figure has caption above: "Figure X - [Company] [Descriptive Title]"
• [ ] Every figure has source line below: "Source: [Specific sources with dates]"
• [ ] Sequential figure numbering (Figure 1, 2, 3... no gaps)
• [ ] Every table has header row with shading
• [ ] Every table has source line at bottom
• [ ] All years use "A" for actual, "E" for estimate notation

Professional Formatting:

• [ ] Consistent fonts throughout (Calibri, Arial, or similar)
• [ ] Headers and footers with page numbers
• [ ] Dense layout: 60-80% page coverage, minimal white space
• [ ] Every page has both text AND visuals (charts or tables)
• [ ] Professional business report template used

Citations & Sources ⭐⭐⭐ CRITICAL

Source Attribution:

• [ ] Every figure has specific source with document name and date
• [ ] Every table has specific source with document reference
• [ ] Key statistics throughout text have footnotes with sources
• [ ] NOT just generic "Company data" - must be specific

Hyperlinks: ⭐⭐⭐ MANDATORY

• [ ] ALL URLs are CLICKABLE HYPERLINKS (not plain text)
• [ ] SEC filings hyperlinked to EDGAR viewer
• [ ] Earnings transcripts hyperlinked (Seeking Alpha or company IR)
• [ ] Press releases hyperlinked to company IR page
• [ ] Presentations hyperlinked to PDF URLs
• [ ] Industry reports hyperlinked (if publicly available)
• [ ] Subscription data (Bloomberg, FactSet) noted as "(subscription required)"
• [ ] No raw URLs displayed anywhere - all formatted as hyperlinks
• [ ] Test 3-5 sample hyperlinks to ensure they work (Ctrl+Click)

Reference Page:

• [ ] "Data Sources & References" page at end of report
• [ ] Lists ALL sources used in report
• [ ] Sources organized by category (SEC Filings, Earnings Transcripts, etc.)
• [ ] Every source has date
• [ ] Every source has clickable hyperlink (where applicable)

XLS Financial Model - Structure

File Structure:

• [ ] 15+ tabs in Excel workbook
• [ ] Tabs include: Executive Summary, Assumptions, Historical Financials, Revenue Model, Operating Expenses, Income Statement, Balance Sheet, Cash Flow, Supporting Schedules, DCF Valuation, Comps Analysis, Precedent Transactions, Scenarios, Sensitivity Analysis, Charts

Formatting:

• [ ] Blue text for hardcoded inputs
• [ ] Black text for formulas
• [ ] Green text for links to other sheets
• [ ] Professional formatting with borders and shading
• [ ] Clear section headers and labels

Model Functionality:

• [ ] All numbers flow (change assumption → entire model updates)
• [ ] DCF links to assumptions and projections
• [ ] No circular references or errors
• [ ] All important cells/ranges are named
• [ ] Sensitivity tables work dynamically

XLS Financial Model - Content

Projections:

• [ ] 3-5 years historical data
• [ ] 5 years forward projections (FY+1 through FY+5)
• [ ] Revenue broken down by product, geography, channel
• [ ] Full P&L with 40-50 line items
• [ ] Full cash flow with 30-40 line items
• [ ] Full balance sheet with 35-45 line items

Valuation:

• [ ] Complete DCF model with all calculations shown
• [ ] WACC calculation with all components
• [ ] Terminal value calculation
• [ ] Comparable companies analysis (5-10 companies)
• [ ] Precedent transactions analysis (5-10 deals)
• [ ] Scenario analysis (Bull/Base/Bear)
• [ ] Two sensitivity tables

Cross-File Consistency

CRITICAL: Numbers must match EXACTLY between DOCX and XLS

• [ ] Revenue numbers match across both files
• [ ] EPS numbers match across both files
• [ ] Margin percentages match across both files
• [ ] Valuation numbers match across both files
• [ ] Price target matches across both files
• [ ] All projected years match across both files

Verification Method: Spot check 10-15 key numbers between DOCX report and XLS model.

Content Quality

Investment Thesis:

• [ ] 3-5 clear thesis pillars
• [ ] Each pillar supported with specific data and quantification
• [ ] Financial impact quantified for each pillar
• [ ] Catalysts identified with timelines

Analysis Depth:

• [ ] Comprehensive business model analysis
• [ ] Detailed competitive assessment
• [ ] 3-5 year financial trends analyzed
• [ ] 8-12 risks identified and quantified
• [ ] Management team analyzed (300-400 words per executive)

Assumptions:

• [ ] 2,000-3,000 words documenting ALL assumptions
• [ ] Revenue growth assumptions by category/geography
• [ ] Margin assumptions with bridge showing drivers
• [ ] Working capital assumptions
• [ ] CapEx assumptions
• [ ] Each assumption has specific quantification

Scenarios:

• [ ] 1,500-2,000 words on scenario analysis
• [ ] Bull case with specific parameters and catalysts
• [ ] Base case with detailed rationale
• [ ] Bear case with specific triggers
• [ ] Probability assessments for each scenario

Writing Quality

Style:

• [ ] Lead with numbers ("Revenue grew 15% to $1.2B" not "Strong revenue")
• [ ] Use "vs." not "versus"
• [ ] Be direct and concise
• [ ] Professional institutional tone throughout
• [ ] No informal language

Accuracy:

• [ ] No typos in ticker symbol
• [ ] No typos in company name
• [ ] All dates accurate
• [ ] All calculations verified
• [ ] Charts match text descriptions
• [ ] All numbers properly formatted ($ signs, % signs, commas)

Pre-Delivery Final Check

Run through this quick final review:

1. Deliverables: Both DOCX and XLS files created ✓
2. Length: DOCX is 30-50 pages ✓
3. Charts: 25-35 actual PNG/JPG files embedded ✓
4. Tables: 12-20 comprehensive tables included ✓
5. Words: 10,000-15,000 words ✓
6. Hyperlinks: Test 3-5 hyperlinks - all work ✓
7. Cross-check: Spot check 10 numbers match between DOCX and XLS ✓
8. Page 1: "INITIATING COVERAGE" header present ✓

If ANY item fails, DO NOT DELIVER. Go back and fix.

Actual Count Verification

Before delivery, fill in actual counts:

DOCX Report:

• Page count: _____ pages (MUST BE 30-50)
• Chart count: _____ charts (MUST BE 25-35)
• Table count: _____ tables (MUST BE 12-20)
• Word count: _____ words (MUST BE 10,000-15,000)

XLS Model:

• Tab count: _____ tabs (SHOULD BE 15+)
• Model years: _____ historical + _____ projected

If any count is below minimum, STOP and add content before delivery.