Phase VI – Capital Markets Alternatives

Deal Ratings. All deals receive a score, which is aligned to how a financier assesses acceptable minimum scores to finance a deal. A properly prepared CMA scores all sources of capital pools under the same system to remove any subjectivity.

What a Score will look like:

If you have a B Grade Deal and are unwilling to take the necessary steps to upgrade to a higher score, then you should lower your expectations about completing a transaction, because there are fewer capital sources willing to accept B Grade Deals. Typically, if a B Grade Deal is accepted, the costs are much higher than an A Grade Deal. If your rating is below a B- Grade Deal and you’re not willing to do what is necessary to move up to at least a B- Grade, then it is highly unlikely you will complete your transaction.

Develop an understanding of the Capital Markets Alternatives that are available and appropriate.
The Capital Markets Assessment provides the Business Owner with alternatives regarding pricing, timing and probability of success.
A CMA is part of a proven Deal Screening Process that scores and rates your business as a financing candidate. The CMA accomplishes the following for you:

 Deal rating and score computation to assess the funding potential and its cost to your business, as documented in a CMA.
 Preliminary due diligence to ensure that many of the corporate papers are in order. This effort minimizes the Deal Structure Process time.
 Deal presentation material to support the preparation required for discussions with funding sources.
 Management of consulting services to enhance your proposal to improve deal score and rating.

A proper Capital Markets Analysis is built on a Multipoint Evaluation Process similar to the system used by FICO for credit evaluation. It will ultimately be applied to a scoring system similar to Moody’s Rating System.

What To Obtain

Phase VII – Liquidity Roadmap

A Liquidity Roadmap™ is a plan for Business Owners designed to identify and achieve their financial, per­sonal and estate planning goals by maximizing the opportunities to obtain liquidity for the business or the Business Owner.
The Liquidity Roadmap™:

• Requires the participation of experts in the areas of business valuation, business and estate law, ac¬counting, business consulting, business brokerage, investment banking, and financial planning.
• Documents formal recommendations resulting from the team’s 9-phase analysis of the business, its industry and the economy in which it conducts business.
• Benchmarks progress and milestones for executing recommended action plans.

A team ap¬proach allows the Business Owner to capitalize on the specific areas of expertise of each advisor in developing the Roadmap. The result is a comprehensive and coordinated plan. The Liquidity Roadmap™ helps maximize financial return, minimize tax liability, plan for contingencies and increase the likelihood of a successful liquidity event by utilizing a collaborative approach. Most importantly, you will gain clarity, certainty and peace-of-mind.

A Trusted Business Advisor will assist owners and their advisors in rounding out the team of disciplines to successfully implement the plan. You should coordinate the process and craft the Liquidity Roadmap™, based on the analysis and recommendations from all the professionals on your collaborative team.

Have a question? Contact Micheal Gilburd.