The Process:

• Study our products and make sure we offer what you need. Review our candidate profiles to understand whether a good fit exists between your funding needs and our products.
  
  
• The best way to bring a business plan to MerchantBanc is through an introduction by a firm with whom we have an established relationship. Review the list of our institutional investors to see if you know anyone at these firms. Ask them to make an introduction, and they will be happy to help. Also, inquire if your accountant or law firm has a relationship with us.If you do not have a connection to one of these firms, you may e-mail a plan to one of our principals.
  
  
• Business plans must include:
  • Concise statement of the proprietary product or service offered
  • Description of the niche market served
  • Competition matrix
  • Description of the product/service barrier to competition
  • Summary of prior 3 years income statements, including margins
  • Balance sheet summary
  • Summary of 3-year operating projections, including margins
  • Statement of investment request, including: type of investment product, amount needed; and use of proceeds.
  • Summary description of management team
  
  
  
• We will follow up with you after we have determined if we can help. If we believe we can, we will ask for a meeting. Come prepared with a slide presentation that you can leave behind.
  
  
• If we believe a good opportunity exists, we will ask for additional meetings at your company so that we can learn enough to prepare a Term Sheet. The Term Sheet is a non-binding recommendation for pricing, structure and terms that, once agreed to by both parties, can be used as a basis for obtaining approval for investment from our Managing Directors.
  
  
• Once a term sheet is cast, we will ask for more information to perform our due diligence. Most of this information will be names of customers and professional contacts that are willing to educate us more about your business and provide reference for you and your company.
  
  
• After our due diligence is complete, we will review the term sheet again as long as the information we have learned through the due diligence process supports a decision to move forward. We then proceed to obtain final commitment for investment by our Managing Directors.
  
  
• Upon approval, our legal counsel will prepare documents that will need to be reviewed by your counsel. Once both parties are satisfied with documentation, we proceed to closing.
  
  
• Please be aware that you should allow a minimum of 3-4 months from inquiry to closing. If we can do it in less time we will, but you should plan accordingly.