Strategy & Procedures
Strong Management Team
Critical to funding success is the experience of the management team. The market has demonstrated over and again that companies with strong management win investment over companies with weak management. We look for a dedicated, focused, cohesive management team which has proven their ability to meet the market's obstacles and overcome them
TCI is an industry generalist. We have expertise in the medical, information technology, telecommunications, media, cable, networking industries. With our range of contacts who are expert in these as well as other fields, we rapidly come up to speed in understanding your industry's operating characteristics, unique risk profiles, and market drivers
Unique Market Focus
This means a well-defined focus on the market the Company serves; an understanding as to why that market focus allows the Company to differentiate itself from its competitors; and how that market focus creates Company profitability.
We work primarily with companies having annual revenues of $2.5 millions to $50 millions.
Our successful clients show the following profiles:
- Positive earnings in two of the last three years or have a demonstable path to profitibility within 1 year of capital infusion
- EBITDA between 7.5% and 15% of gross revenues
Time in Business
Our typical client's business has been operational for 2 years or longer.
Negotiating the offer can also become a time consuming business. The following steps can give you a sense of the progress to the transaction's funding:
- Introduction, and sending the executive summary, business plan
- First pitch - If you make to this point, you are way ahead of most capital seekers.
- Due Diligence - Are the prospective investors calling your references? What kind of questions are they asking? What additionaly materials, information are they seeking from you? What are their percieved interest levels?
- Full partner pitch - You are now under serious consideration. This is the short list. Make sure you have to have your sponsor give you inforamtion as to their hot buttons or any unresolved issues that need clarafication. Be sure to call back for feedback on how the full partner meeting went; answer any questions, follow-up to close.
- Term Sheet - THIS IS THE PROMISED LAND! This may take days or weeks after the full partner meeting and their decision to move forward.
- Syndication - Depending on the firm, amount of financing, structure, and other variables, there may be another whole process of finding co-investors. This can be trivial or a whole other sales cycle of pitches.
- Closing - This can take as long as a month depending on the details. Time to make sure you understand all the trivial deal points. Remain focused on the goal - CLOSING!