For any given project other than Projects requiring funding
Capital Corp’s process draws on its many years of Corporate Finance experience to evaluate companies, prepare the proposed transaction materials, and close the transaction. There are six phases of the process for direct investments:
Phase 1: Screening Referrals
Phase 2: Assessing the Investment Opportunity
Phase 3: Performing Due Diligence
Phase 4: Supporting Investor Review
Phase 5: Supporting Market Place Activity
Phase 6: Ensuring On Going Accountability
Phase 1: Screening Referrals
Capital Corp pursues Private Investment Opportunities referred through Banks, Venture Capital Firms, its network of Professional Banking Consultants, and Introducers – all of whom are protected for their commission. Capital Corp gathers insight into each Investment Opportunity, including its Business Model, Financial Prospects, Management Team, and of course the use of Funds. Capital Corp also consults Industry Experts (if appropriate) regarding the Business Model and assesses Market conditions.
Phase 2: Assessing the Return on Investment Opportunities
Using its standardized data sheets, Capital Corp will gather complete details about the Client's business strategy, financial history, management structure, growth objectives, products, markets, competitive forces, and capital requirements. Capital Corp then assesses the financing need in order to determine if the opportunity is compatible with the investment returns specific to the company's industry.
Phase 3: Performing Due Diligence
Capital Corp will then assemble a Team of Investment Professionals and, if necessary, Outside Advisors to perform the appropriate Due Diligence. It is also common procedure to outsource specific Assignments to firms such as American Appraisal Associates, Ernst and Young International, The Law Firm of Baker – all of whom have a well-established professional relationship with Capital Corp.
The Due Diligence includes a thorough review of any and all aspects of the Client’s projects and review of any and all related documents.
The outcome leads to a conclusion of “Go/ No Go,” and if it’s a No Go, Capital Corp works with the client to assess the weaknesses of the Project and try, in cooperation with the client, to remedy to the situation.
Phase 4: Supporting Investors Review
At Capital Corp, a transaction moves forward, further to a positive Due Diligence. The Project is then submitted to Capital Corp's Executive Committee, and further to a positive recommendation, Capital Corp then establishes the “Amount of Funding” to be provided by Capital Corp’s “Own” funds, while the difference between Capital Corp’s Own investment and the amount of funding needed is “Syndicated” with Corporate Investors.
Phase 5: Supporting Closing Activity
As “Principal” or “Advisor,” Capital Corp responds to Corporate Investors inquiries as they review the proposed transaction, until the “Closing” of the transaction.
Phase 6: Ensuring Ongoing Accountability
Once a Company / Client has received its funding, it submits an On-Going Performance Report to Capital Corp and its Financial Partner / Funder / Corporate Investors.
