Because of the nature of Venture Capital, Joint Ventures and / or Equity participation in projects, it is an international requirement for the Venture Capital groups, J.V. participants, and capital providers to complete 2 different types of Due Diligence on each client’s project.
Before we ever reach the first of these, it is essential for the applicants to prepared for a thorough appraisal of their entire operation. This process is carried-out by our Executive Officers. Every statement offered by yourselves we shall checked to ensure that it may be established in fact, with supporting evidence. We expect that applicants have an Executive Summary and Cashflow Projections for 3 years as a minimum to indicate the strength of the project.
Following our Executives’ assessment of the initial documentation, we may issue a substantial requisition to attempt to ascertain the thoroughness of the preparation of the project for the potential Investor/funder's Due Diligence. If necessary, further requisitions may be issued so that a full set of documents can be brought together. These will be the basis for the final Due Diligence itself.
Stage 1 - Preliminary due diligence
Following the supply of the initial materials, and their favourable appraisal an 'on site' Due Diligence may take place. This is where the AMS representatives will travel to the applicant and carry out face to face meetings with the applicant and their legal and financial agents. The funders' representative, Executives and/or specialists may also visit the site of the proposed project to meet with any critical participants in the project e.g.. Government Officials, Architects, Builders, Engineers etc. This may entail a visit to 2 or even 3 different countries depending on the nature of the project, its' location, and who is contracted to complete it.
Stage 2 - Legal due diligence
Following a successful 'on-site' Due Diligence, investigation, and/or examination the client is notified in the form of a formal Conditional Letter of Offer, or, a Letter of Advice and /or an Indicative, In-principal Offer for a facility which may be subject to satisfactory completion of a 'Legal' Due Diligence. This is carried out by an appointed legal firm in the applicant’s own country. It is done to ensure that the project and all the information/data presented is true and correct, both for the project and the main individual principals.
On successful completion of the 'Legal' Due Diligence, a Venture Capital, J.V. Loan and/or Participation Agreement is drawn up, in association with the Client and their legal representative.
Once this document is executed, settlement/completion of the facility, may occur as required.
Please ensure that the information and requirements outlined on this page are read and understood, as unnecessary delays caused by a reluctant client during processing, may jeopardize the funding, and result in unnecessary costs being incurred.
Contact the AMS office with any questions or queries or further explanation of important details noted on this page.