Assessing whether your company is investment ready, marketable, and has the ability to attract new equity partners and investors requires investment experience. We are capital advisors, and we can help now! At FNP, we understand how various funding sources evaluate your growth potential as well as those factors effecting success. From our industry experience and those of our funding partners, FNP has a vetted, built-in process to guide your success. The following is a summary of this process:
Your company makes a connection with FNP, FNP conducts an initial evaluation:
FNP takes a deeper dive into the company’s:
Letter of Intent:
Once FNP is satisfied that the company has a unique offering and high profit potential, FNP will issue a Letter of Intent (LOI) to the company and begin conducting an in-depth due diligence review. Items in the LOI include:
Due Diligence:
Once the LOI signed the “Due Diligence” process will start. Depending on the complexity of the company’s operation, this process usually will take from 4 to 8 weeks.
In the Due Diligence phase, investors take a closer look at:
Completing the equity agreement:
When the Due Diligence process is satisfactorily completed and FNP has determined an investment in the company is sound and meets FNP requirements, it will complete the purchase of the company’s stock as agreed in the LOI and PPM documents.
Transaction funds and document completion will be executed via a third-party trust.
- Where is your company based and incorporated?
- Determine your company’s unique market opportunity
- Expectations for sustainable double-digit growth for the next 5 years
- Company leadership and background
- Your company’s current and future capitalization requirements
- The percentage you are offering of ownership in the company
- On-going areas of technology or services to be developed
FNP takes a deeper dive into the company’s:
- FNP Mutual NDA
- Product, technology, or service
- Milestone achievements
- Granted and pending patents
- Leadership and operational structure
- Sales revenue and marketing channels
- Current financials and cash flow
- Capitalization chart
- Significant industry connections
- Exit strategy
Letter of Intent:
Once FNP is satisfied that the company has a unique offering and high profit potential, FNP will issue a Letter of Intent (LOI) to the company and begin conducting an in-depth due diligence review. Items in the LOI include:
- Current pre-money valuation
- Amount / size of the investment
- Price per share and total number of shares being purchased
- Percentage of ownership and anti-dilution provisions
- Voting and possible board member rights
- Review of the Private Placement Memorandum (PPM)
Due Diligence:
Once the LOI signed the “Due Diligence” process will start. Depending on the complexity of the company’s operation, this process usually will take from 4 to 8 weeks.
In the Due Diligence phase, investors take a closer look at:
- Your products and services offerings in-depth.
- Patents, granted / pending and IP claims.
- The past three years of sales revenues, P&L and balance sheet, banking and tax returns.
- An assessment of your capitalization requirements in relation to your market track record and future business projections.
- A full background check of the founders and key executives.
Completing the equity agreement:
When the Due Diligence process is satisfactorily completed and FNP has determined an investment in the company is sound and meets FNP requirements, it will complete the purchase of the company’s stock as agreed in the LOI and PPM documents.
Transaction funds and document completion will be executed via a third-party trust.