THE BENEFITS OF KNOWLEDGEABLE CAPITAL©
Accessing Knowledgeable Capital© to finance a business has several important benefits:
Resolving "deal killer" issues upfront
Financiers that have already financed businesses in a particular industry or have extensive transactional experience in a particular area are already aware of the issues. As such, they will be able to focus on potential "deal killer" issues early in the process.
Due Diligence is more focused
Deal fatigue is a common cause for failed deals.
A financier who has very little knowledge of a particular industry or type of transaction will tend to compensate by conducting ever more due diligence, leading to delays and unnecessary costs. This in turn leads to increasing frustration by the issuer or borrower and consequently the transaction has a far higher likelihood of failure.
A knowledgeable financier will be better able to direct the due diligence to the areas that are truly important and move the transaction along efficiently.
Terms are more flexible and appropriate
Financiers that have knowledge of a sector or industry or type of transaction are better at assessing the risks and rewards of a particular opportunity.
As a result, knowledgeable financiers will be in a far better position to provide a financing proposal that meets our client's expectations and that reflects the risks and rewards of the opportunity and as such, properly priced.