Capital Markets Assessment

The CMA is part of a proven Deal Screening Process that scores and rates your business as a financing candidate. Our CMA accomplishes the following for you:

  • Deal rating and score computation to assess the funding potential and its cost to your business, as documented in our CMA.
  • Preliminary due diligence to ensure that many of the corporate papers are in order. This effort minimizes the Deal Structure Process time.
  • Deal presentation material supporting the preparation required for discussions with funding sources.
  • Management of consulting services that may be necessary to enhance your proposal to improve deal score and rating.

  • Our Capital Markets Assessment is built on a Multipoint Evaluation Process similar to the system used by FICO for credit evaluation. We then apply it to a scoring system similar to Moody's Rating System.

    Deal Ratings

    All deals receive a score, and each financier determines the minimum scores they will accept to finance a deal. ValuCorp scores all sources of capital pools under the same system to remove any subjectivity.

    Rating    Points        Audience
    AAA 950-1000 All Financing Sources
    AA 900-949
    A+ 850-899
    A 800-849 A and B Grade Financial Sources
    A- 750-799
    B+ 650-749
    B 550-649 B Grade Financial Sources
    B- 450-549

    If you have a B Grade Deal and are unwilling to take the necessary steps to upgrade to a higher score, then you should lower your expectations about completing a transaction because there are fewer capital sources willing to accept B Grade Deals. Typically, if a B Grade Deal is accepted, the costs are much higher than an A Grade Deal. If your rating is below a B- Grade Deal and you're not willing to do what is necessary to move up to at least a B- Grade, then it is highly unlikely you will complete your transaction.

    Scoring Criteria

    A summary of the ten areas comprising the scoring criteria is shown in the following table along with the maximum score for each and the actual score a client company achieved.

    Category Weight Category Score
        Max Actual
    Business Valuation 10.0 % 100 43
    Critical Valuation Report 10.0 100 43
    Due Diligence Review 5.0 50 50
    Management Team 25.0 250 160
    Deal Potential 30.0 300 153
    Market Size 2.5 25 5
    Competition 2.5 25 25
    Growth of Industry 2.5 25 5
    International Markets 2.5 25 100
    Competitive Advantage 10.0 100 100
    Total 100.0% 1,000 608

    The specific category values and constituent component values are given in the Assessment along with a more detailed definition of how the score value is derived.

    Alternate Financing

    Once you've completed our Deal Screening Process, you can investigate several alternate financing opportunities. Please note that deals are structured using one or multiples of various available instruments to maximize returns at the lowest possible risk to all involved parties.

    Alternate financing includes:

  • Venture Investment
  • Debenture investment
  • Initial public offering (IPO)
  • Reverse mergers
  • Sale of certain assets
  • Sale of all stock
  • Sale of company assets
  • Divesting a division
  • Line of credit
  • Debt financing
  • ESOP
  • Mergers
  • Acquisitions
  • Franchising
  • Recapitalization
  • Distribution alliances
  • Marketing alliances
  • Joint ventures
  • R&D joint ventures
  • Exclusive technology licenses
  • Recommendations

    We will state our recommendations to you very clearly before we create a deal structure. This will give you the opportunity to take necessary actions to move your business to a higher score before taking the next step.

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