The degree of enthusiasm financing sources show owners depends to a great extent on how owners demonstrate their ability to manage their company and to pay back the financing. Before an owner approaches any financing source, an owner should thoroughly prepare a persuasive presentation in two parts: written and oral. Financial sources will want an owner to convince them that they and their company are a reasonable risk.

To successfully complete our InHouse Recap for an owner, Valufinder, depending upon circumstances, will:

• Work, together with the owner and those senior managers and outside advisors the owner deems appropriate, in preparing a descriptive and persuasive memorandum on the Company and its operations for use in confidential discussions with prospective financing or lending sources (collectively "Sources").
• Prepare a select list of Sources concurrently with the preparation of the memorandum.
• Contact each prospective Source approved by the Company.
• Have the approved Sources that have an interest in the proposed transaction sign a Confidentiality Agreement (which will be pre-approved by the Company) after which they will be sent the written Confidential Information Memorandum.

To give real service you must add something which cannot be bought or measured with money, and that is sincerity and integrity. Donald A. Adams

• Assist the owner and senior management in preparing a confidential oral presentation to be delivered by Company management to each of the approved Sources that visit the Company.
• Schedule and attend exploratory meetings and, subject to availability, any subsequent meetings requested by the Company with any interested approved Sources, and assist them in their due diligence efforts.
• Assist the Company in evaluating each proposal made by the approved Sources to assess the relative advantages and disadvantages of each one.
• Assist the company in negotiating various business points with financial sources.
• Assist attorneys in preparing and negotiating any necessary legal documentation with any final prospective Source.

Because there is no buyer and lenders normally do not pay fees to intermediaries, we would look to the owner for our fees. Valufinder becomes the owner's advisor in creating this financing package. We ask for a nominal non-refundable retainer to demonstrate the owner's good faith in pursuing the InHouse Recap and to have our reasonable expenses reimbursed. The retainer is offset against the success fee which is payable at closing. Simply put: No transaction, no fee.

Your Next Step

We hope that this information helps explain the characteristics and mechanics of our InHouse Recap. If you have any questions or require additional information about how this powerful financing tool can help you obtain a significant liquidity event, please feel free to contact us on a confidential basis and without obligation.

• Please continue to The Selling Process »