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| Because of the nature of Venture Capital/Equity participation projects, it is an international legal requirement for the Venture Capital groups to complete 2 different types of Due Diligence on each clients project. |
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Before we ever reach the first of these,
we consider it to be of paramount importance for our client to be fully
aware of who the participating group is, and their capacity to carry out
the funding. To this end once a 'Non Circumvention/Non Disclosure document
has been executed by us and the client, we may disclose the name of the
group to enable the client to carry out a check* on the group's
credentials.
This action is necessary because, in most
cases, once the deal is placed with the participant group, it has already
been assessed and pre-approved for processing, by the Allied Board of
Directors and CEO, which means that once placed with the group, a Letter
of Intent outlining all the Terms, Conditions and actions necessary, will
be issued to the client in 7 - 10 days.
The Letter of Intent is a 'time limited' document which must be accepted by the client within 10 working days of issue or the "Venture Capital Group" may withdraw. In the past, we have found this to be far too short a "time frame" for the customer to complete adequate inquiries on the "group".
When the client is at comfort with the
proposed funder and the deal proceeds, the Terms and Conditions of the
facility and the necessary steps to be taken for it to progress
successfully, are all outlined in the 'Letter of Intent' which is
normally issued within 4 days of receipt of the proposal, by the funding
group.
STAGE 1 PRELIMINARY DUE DILIGENCE
The first step is an 'on site' Due Diligence,
where the representative will travel to the applicant and carry out face
to face meetings with the applicant and their legal and financial agents.
The funders representative will also visit the site of the proposed
project as well as meet with any critical participants in the project
e.g.. Architects, Builders etc., this may entail a visit to 2 or even 3
different countries depending on the nature of the project and who is
contracted to complete it.
STAGE 2 LEGAL DUE DILIGENCE
Following a successful 'on-site' Due Diligence
the second phase is notified in the formal Letter of Offer, which is
subject to satisfactory completion of a 'Legal' Due Diligence. This is
carried out by an appointed legal firm in the home country and 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 principles.
On successful completion of the 'Legal' Due
Diligence, a Venture Capital/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
within 3 days.
*+++ It is suggested that a "HIGH LEVEL DETAILED REPORT" be obtained by the client, as this will provide "detailed independent analysis" of the proposed "Venture Capital Group" as to their "financial capacity" to move forward to a successful completion for all involved in the project+++ NOTE: Once our Venture Capital Group has issued documents to the client, AMS P/L may not be involved in direct discussions, as same may be conducted by either the European Office, or the USA representatives of the Venture Capital Group. ++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 AMS office with any questions or queries or further explanation of important details noted above.
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