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Process
- Contact
Usually we receive a written or verbal summary of the business proposition from the promoters on initial contact. This gives us an overview of the project and at this stage the promoters also submit a full business plan to us.
- Business Plan Review
When we receive the business plan we assess whether the project falls within the investment criteria and portfolio strategy of the fund. To complete this assessment it may be necessary to meet with the promoters.
- Presentation & Analysis
A presentation from the promoters will normally take place in our offices or the company's premises. The presentation usually clarifies important features of the business plan and involves all key promoters. This gives us the opportunity to raise issues we see as significant at an early stage and get a sense of the promoters' vision for the project.
Following a presentation, we conduct a desktop analysis of the project including a market analysis, comparison with competitors, technical review and financial analysis. This process may require follow-up meetings and the provision of detailed supporting documentation to supplement the business plan. Once the desktop analysis is complete, a decision will be made whether to progress a negotiation of indicative terms.
- Term Sheet
A non-binding term sheet will set out the main parameters of the deal. The term sheet will include the amount to be invested, type of investment instrument, any conditions precedent, the treatment of costs and any covenants and warranties required. Once the term sheet is executed by both parties the due diligence process commences.
- Due Diligence
The process comprises commercial, financial and legal due diligence. This involves in-depth reviews and analyses of the legal, financial, technical and human resource aspects of the project. This process may involve the use of external experts (Solicitors, Accountants, Technical Advisors, etc.) and the various aspects of due diligence are usually run simultaneously.
- Completion
Once the legal and due diligence processes are complete, the transaction is executed and funds are transferred to the company.
