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The
Process TSG Capital has a firm process which we use to determine whether and we
can finance a client: Ø Step One
is the Review. The potential client submits either an Executive Summary or Business
Plan to thereviewcommittee@TSGcapital.net via email. If we have any interest in the venture then
we will proceed to the next step. Ø Step Two is the Tele-Conference. TSG Capital will arrange
to listen to a management presentation by the CEO via telephone at a
pre-arranged time on our conference line.
This presentation should introduce: the kind of funding that you
require and collateral that you may have. Then the backgrounds of the
management team, the market, needs of the market and the company’s products
or services. If we have any interest in the venture then we will proceed to
the next step. Ø Step Three is the Checklist. TSG Capital will email the potential client
a Checklist of documentation required for a preliminary due diligence. This documentation will allow TSG Capital
to determine whether the character of the management team allows for
financing. There is usually a nominal
fee attached to this process, known as a “good faith fee.” This fee deters
those of poor character as they realize that they will be found out and lose
their “good faith fee.” We check for criminal
backgrounds, SEC violations and fraud over $ 500,000 USD and other
characteristics that may have an effect on our determination whether or not
to issue a Term Sheet for the transactions.
Ø Step Four is the Term
Sheet. There will be an in-depth analysis of the
client’s financial information to determine whether their business can
support the debt on a Collateral and Cash flow basis. If it is determined
that there is Collateral and Cash flow basis to secure and carry debt then
TSG Capital will issue a Term Sheet. Ø Step Five is the Documentation. Depending on the
requirements of the Term Sheet we will provide documentation for you to
authorize. There may be a valuation
required as a basis for the transaction.
Valuations are done by a third-party selected by TSG Capital. Ø Step Six is the Closing. All closing are held in
the customer’s office at a pre-arranged meeting.
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