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.