We tailor our investment process to each particular opportunity. Typically, after several discussions with ownership and management and review of the company’s financial reports, we will prepare a detailed financial model to aid in pricing and structure. We will then provide a letter of intent (LOI) that specifies the key terms of our proposed investment. Once we have agreed upon the terms, we will begin an intensive due diligence process.
Our due diligence is centered on interaction between the company’s management and our team, which includes our strategic advisors. We will also involve outside attorneys, accountants, and other professionals or industry experts, as needed. This process usually includes the production of a quality of earnings report that will help us assess the financial health and stability of the business. We also perform background checks on, and get credit reports and personal financial statements from, owners and key executives.
As soon as we begin due diligence, we prepare an executive summary of the business and begin sharing information about the company and the investment with our investors. We will host a webinar with the company’s key managers and give them the opportunity to explain their business to our investors. As due diligence continues, we develop a full private placement memorandum (PPM) for our investors. This document details every significant aspect of the business and the investment.
Our goal is to close and fund every operating company transaction within 90 days of signing the LOI.