Our process is driven by transaction type.
All opportunities introduced to us are reviewed and, if considered attractive, we will respond to all serious enquiries within two weeks with an expression of our level of interest. Wherever possible, we will hold an initial meeting with management to assist in our decision making. Our team at this stage will usually consist of a Director supported by one or two analysts. If the results of initial evaluation are positive, an outline proposal describing our interest will be presented.
We may seek an agreement to work exclusively on a proposed transaction, although this is not always the case. Detailed due diligence will typically involve our staff assisted by external industry experts. Our due diligence is not a linear process; work on each area will be carried out concurrently to ensure a timely response. The evaluation of management is always a key part of the process and the team may be requested to meet a wider group of Directors and advisors. An accountants report and legal review may also be commissioned to complete due diligence. The time required to move from initial contact to a positive decision can range from a few days to a few months and is largely dependent upon transaction type and the co-operation of the company and its advisors.
In some cases we may conclude that a company is progressing in a positive manner, but will want to monitor its progress further before assisting. Following a positive decision, closing a financing transaction can require an additional two to eight weeks of legal work, depending upon transaction type.
We prefer to function as a leader rather than following others and as such we make our decisions based upon our own evaluation and due diligence and not on the basis of whether or not other firms are prepared to participate. We are, however, prepared to work with other firms provided that we are still able to work with management in follow-on financings