Each proposal we receive is unique, and because of the variable aspects of a business and the shareholders or parties involved, deals take different amounts of time to conclude. Generally, from initial application to the release of funds takes 6 months. This is because Invenfin is very thorough in our assessment process, as we are investing Remgro’s funds, and there is a comprehensive internal procedure which we follow before presenting potential investment to our board. Below is a basic outline of what is involved in our assessment process.
Initial application
The information provided in the application form or business plan is evaluated by the Invenfin team to determine whether it is in line with our mandate and whether it is a venture we would like to learn more about.
Estimate: 2 Weeks
Basic Assessment
This includes initial meetings with the business owners and entrepreneurs, where they will present their business case with the objective of determining possible synergies. Invenfin also requests/gathers additional information on aspects of the business e.g. competitors, market, technology.
Estimate: 4 Weeks
Detailed investigation
A detailed investigation is conducted by the Invenfin team which may include assistance from our advisors. This involves an extensive review of the product, team, market and competitors, legal issues, development plan and financials of the business.
Estimate: 6 Weeks
Investment proposal, term sheet & Board decision
Once the detailed investigation has uncovered no potential stumbling blocks, an investment proposal will be drafted by the Invenfin team. This will include the proposed deal and term sheet and is then presented to the Invenfin Board for a final review and decision.
Estimate: 4 Weeks
Due Diligence, contracting, leading into investment management
Following a positive investment decision by the Invenfin Board, due diligence will begin. Due diligence is a detailed investigation or audit of a business and/or people before an agreement is signed. Invenfin’s due diligence process reviews the financial, governance, intellectual property, human resource, market and legal aspects of an investment and any potential risks. If no deal critical items are found during due diligence, contracting will commence. Once contracts are signed, the first instalment of funds will be paid out and investment management will begin.
Estimate: 8 Weeks