Knowledgeable Capital©
ZED's Proprietary Financing Network
In order to identify the most appropriate sources of Knowledgeable Capital©, ZED has developed a winning methodology.
Since its inception in 2002, ZED has been building its network of financiers in North America and Europe.
We have profiled over 1,500 private equity funds and 400 debt providers in our database; wherein we constantly track:
• Industry preferences and investments made.
• Types of transactions and financial instruments invested in.
• Preferred size.
• Investment criteria.
• Geographical preference.
This allows ZED to very quickly identify the most appropriate sources of capital for our clients.
The Benefits of Knowledgable Capital©
Accessing Knowledgeable Capital© to finance a business has a number of important benefits:
Resolving issues upfront
The funds that have already financed businesses in a particular industry or have extensive transactional experience in the sector are already aware of potential issues. As such, they will be able to focus on potential “deal killer” issues early on in the process.
Due Diligence is more focused
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 due to deal fatigue, a common cause for failed deals.
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. You do not need to waste time "educating" the investor on the sector.
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.
The Value Added Process
Once the appropriate capital providers have been identified, ZED will then move the transaction forward towards closing as follows:
Preparing the Confidential Information Memorandum (CIM)
It is very important that the documentation stage is completed correctly, as it is the foundation upon which the due diligence and the pricing are based. We try and anticipate the financing questions in advance (given their knowledge) and ensure they are answered in the CIM.
All issues – strengths and weaknesses, opportunities and threats – must be raised and dealt with upfront in the document, so that there are no surprises during the due diligence process. It is also important that the potential financiers understand the deal completely and what is expected of them right at the outset.
Evaluating Financing Proposals
In order to save the client valuable time, ZED will evaluate all of the proposals and highlight to the client which of the financing proposals best matches their needs.
ZED believes that time is the most valuable commodity for a management team and as such, ZED does not require that management go on time consuming and expensive roadshows.
Due Diligence
The ZED team will assist the client in preparing for and completing the due diligence process and help resolve any issues that may arise.
Negotiating Final Terms and Closing
The ZED team will assist the client in negotiating the final terms of the financing through to a successful closing.