It is the professional experience of Capital Corp Merchant Banking that construction financing commonly falls into two separate categories; namely (1) Direct Financing or (2) Separate Entity Financing.The first category, direct financing, is done without the use of setting up a separate entity and rather focuses on the construction would be funded from the Client’s existing company. Ba ... [
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An important part of any Due Diligence is the examination of a company’s financial statements. The following will take a closer look at some of the elements that one ought to pay particular attention to in regards to the Balance Sheet.Depending on whether the project has a single company or a group of companies, looking at the consolidated balance sheet provides the best opportunity to view ... [
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A question often asked of Capital Corp Merchant Banking by project promoters and brokers alike is…What is your project size range?Capital Corp Merchant Banking appreciates the opportunity to view and work on projects with a varying amount and in general the project financing range is from US$ 3.5 M to US$ 500.0 M.The amounts mentioned previously, in particularly the latter, can be adjusted ... [
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When considering the particulars of a new project it is not uncommon for a funder to require that no new technology be utilized in the project. This has become an ever more discussed topic as many projects look for new ways to be “green” and stay cost effective.The reliability of any technology used in a project must be well established and proven. The use of new technology ... [
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In further addition to the recent post on the evolution of the Business Development Department of Capital Corp Merchant Banking, we felt it prudent to provide further details on one other important aspect of this subject.Further to carrying out the procedures of “Submitting a Project,” a client and broker alike will receive a response from our Business Development Department with the s ... [
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In the past, when a promoter or broker had a project that required funding, his/her first instinct was to telephone Capital Corp Merchant Banking at our office in Orlando to discuss the “ins and outs” of the project. Unfortunately, given the volume of new projects received on a daily basis and the time that would be required to respect each caller, time delays were inevitable. Therefor ... [
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As aforementioned on the Capital Corp Merchant Banking corporate website, we have the ability to structure the financing of a project with an equity investment. However, one important issue of such an investment that is often overlooked by a project promoter is the mechanism of exit to investors. In other words, how will investors/owners cash-in their investment?Exit routes in private ... [
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No matter the current status of the financial markets, one constant always seems to be the abundance of energy-related projects looking for funding. The experience of Capital Corp Merchant Banking has been that no matter the landscape, there are always promoters searching for financing for energy projects.For instance, when the price of oil is high, the amount of alternative energy projects ... [
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The final version of each individual’s definition of the word ethics may have more varieties or “flavors” than the local ice cream shop. That is not to say that one person is more right than the other but that they are, by definition, one’s own thinking, which makes them unique - solely and collectively.By a dictionary’s standards, a code of ethics means the body of m ... [
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In connection with a previous communiqué (Does Capital Corp Merchant Banking Charge Fees?), the following will overview the “fees” that are potentially required and paid to a single or multiple Third Parties by the Client. As discussed in the previous post, if a client mandates Capital Corp Merchant Banking to execute the necessary Due Diligence, the Due Diligence would be payable to C ... [
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Upon successful syndication, many Clients wonder the role of Capital Corp Merchant Banking’s involvement in their project going forward. This role would need to be defined on a case-by-case basis depending on the specific needs and development stages of a project.In all cases, however, Capital Corp Merchant Banking’s main goal is to be a value-added investor. While a Client ... [
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This is a question often asked by any new or potential Client to Capital Corp Merchant Banking. And the simple answer is Yes. But it is not necessarily that simple.This topic has been discussed within this section on different occasions and from varying angles but the following will demonstrate the Fees associated with Capital Corp Merchant Banking from beginning to end.From the beginning (meaning ... [
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One of the types of projects that can be funded at Capital Corp Merchant Banking is acquisition or merger of one company by another. During the Due Diligence process there are, of course, many types of questions and/or points that must be adequately addressed.One of those issues that we would like to discuss in this note is in regards to the “fit” of the two businesse ... [
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In any given transaction or project, Capital Corp Merchant Banking will perform a Preliminary Due Diligence - or a “Pre-Due Diligence.”This Pre-Due Diligence process is by any standards quite extensive and throrough, to the point that Capital Corp Merchant Banking will call upon several Business Professionals and Contacts alike to identify the potential strengths and/or weaknesses of&n ... [
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The process of a firm buying out another can be a laborious, demanding process and can take weeks, months and in some cases even years. That said, it can also be a very rewarding process if executed correctly if the necessary Due Diligence is performed and completed. Since the acquisition of a business will generally involve investing a sizable amount of money and time, it is critical that the pur ... [
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A prospective Client or Business Consultant would formerly have been able to proceed to Capital Corp Merchant Banking’s website and then to the navigation bar of “Projects Recently Funded” tab. There the user would be able to click the Tombstones presented to have a better view of the projects recently funded.In recent weeks, Capital Corp Merchant Banking has had to make a ... [
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The Multilateral Investment Guarantee Agency, also known as “MIGA,” is an agency in association with the World Bank Group that supports and/or sponsors Foreign Direct Investment into developing countries to develop and progress the livelihoods of people.The tool utilized for carrying this out is to provide Political Risk Insurance, or “guarantees,” to members of the private ... [
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As formerly discussed in earlier posts of the Info/Funding Page, the Appraisal Report of a project is an essential requirement of a Due Diligence completed by Capital Corp Merchant Banking. Experienced business professionals understand that the three basic approaches employed by an Appraisal Firm to reach a value conclusion are (1) income, (2) sales, and (3) cost. It has, however, been ... [
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There is one important common courtesy that can sometimes be forgotten when a project promoter is in need of funding from such a firm as Capital Corp Merchant Banking. That consideration is in regards to making sure a promoter stays in continuous contact with the funder.A polite acknowledgement of an important email from Capital Corp Merchant Banking, or a brief note informing us you will be ... [
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The term “Economical Viability” is not a phrase heard on a daily basis, outside of a few certain financial circles. That said, they are heard quite often, though separately.Therefore, to define this term we shall view them individually first.“Economical” (or economic) is generally associated with being careful, efficient, and prudent; thereby operating with little waste or ... [
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Whenever a project is submitted to Capital Corp Merchant Banking for funding, one of the most important questions to be answered is “who” is the Client; in other words, what is the correct legal name of the company that will serve as the investment vehicle of the project?This seemingly small detail is often overlooked by promoters. This is why this is the very first question Capi ... [
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Though both Merchant Banking Institutions and Investment Banks contain the word “bank," neither is actually a bank in the traditional terms where one would normally perform such activities as checking and savings accounts. In fact, at their core, they are quite different types of financial institutions that perform otherwise different services.Investment banks, on the other hand, tend t ... [
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"What type of financing is better for me?"A question like the above may not have a simple answer as there is no exact recipe that will work for everyone. Different approaches are generally taken to decide if all debt or all equity (or a mix of the two) will serve the parties involved in a certain situation/project.For example, a start-up is usually not self supporting in its infant ... [
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In conclusion of Capital Corp Merchant Banking’s concise review of important accounting policies that must be taken into account to complete a full businesses evaluation, we would like to briefly highlight a few more brief examples below:- A reserve account, which is charged against income that in one’s professional opinion is likely to not be enough to address a fort ... [
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When Capital Corp Merchant Banking conducts a Due Diligence for a project in which the native language of the associated company(ies) or country(ies) is not English, it is required that any and all documentation be professionally translated by a certified translator, duly stamped and signed.The reason for such a requirement is twofold:1.) The Professional Translator is an outside ... [
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The world in which we all live in has simultaneously grown smaller and larger. The vast and wide-spreading technological advances of today, particularly the Internet, have allowed individuals to get closer than ever to the intricacies of other countries by the click of a mouse, and yet the amount of information that has become available is now nearly infinite. Therefore, when a Client is looking ... [
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The fundamental goal of a business evaluation regarding accounting policies is for Capital Corp Merchant Banking’s Due Diligence team to fully analyze the major financial accounts and discern their effect on the reported income / loss. Those results should then be compared to what the financial results would have been if the business employed certain practices; say, after the investm ... [
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The policies and procedures set forth by Capital Corp Merchant Banking are specifically designed for the purpose of not only protecting Capital Corp Merchant Banking and its Investors but also to guard the Client against any and all possibilities of error, confusion, and simple mistakes.As a result, consistency and accuracy in the Client’s representations is a crucial factor and requirement ... [
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In continuation of the topic of business evaluation based on accounting principles, Capital Corp Merchant Banking deems an analyst must understand that if any accounting practices are unearthed to inflate or deflate profit, it is highly likely these practices have been in place for some time.A business has many objectives when accounting policies are chosen; the broad list below outlines some that ... [
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A topic that can not be reiterated enough is the necessity of Clients to fully disclose the state of their project or company - not where it could or can be but rather where it is today. For instance, if a Client states having invested US $2.0 M into a project as “cash,” he/she will need to provide the necessary documentation, which may include audited financial statements, bank docume ... [
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