Investment Process

By: Efsk  09-12-2011
Keywords: Investment, Financial Projections

  • 1. Initial Review: Meet with proponents; discuss their business proposition and capital requirements; determine if the opportunity falls within the investor's invesment parameters & criteria (i.e. amount, industry sector or stage of development). 

  • 2. Visit Company: Investors conduct an on-site visit to the operations in order to better understand the business operations, processes, product, services, meet key staff and have more detailed discussions on all aspects of the business.

  • 3. Preliminary Due Diligence: Commence preliminary due diligence in order to acquire a high level of confidence with such areas as its principals, products, markets, competition, financial projections and growth opportunities.

  • 4. Issue Preliminary Term Sheet: If the preliminary due diligence does not reveal major issues or concerns that cannot be overcome, a preliminary Term Sheet is generally issued. This document will detail the proposed investment amount, form of investment and the terms and conditions of the investment, subject to satisfactory completion of final due diligence and investment approval.

  • 5. Final Due Diligence: Once the preliminary Term Sheet has been signed by the company the investor will finalize its due diligence.

  • 6. Recommendation to the Fund: The investor will seek present the investment opportunity, due diligence results and investment details in a formal recommendation to its Board or Invesment Committee.

  • 7. Approval: The investment is approved and legal closing is finalized. Subsequent to the investment being approved the investor will manage and monitor the investment.

  • Keywords: Financial Projections, Investment

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