The Process

The process of raising private equity can be a daunting task. There are often numerous players involved in the process, all with their own opinions and distinct and different personalities. It is during this process that a company engages in it first real dialogue with the financial partner it chooses, and it is here when the company finds out who its financial partner REALLY is.

One of the fundamental building blocks needed to help ensure the completion of a transaction is the selection of a proven, reputable, and experienced financial partner. The princiapals at Plexus have been active in private equity for many years, having successfully completed numerous transactions. No deal is ever the same, and while the principals are continually learning and refining their process, they always look back on their past experiences to assist in ensuring a smooth process going forward.  The Plexus team knows the “ins and outs” of the process, the nuances, the hurdles, and the road blocks. Plexus can competently navigate these waters on behalf of prospective portfolio companies, helping facilitate a successful closing.

The following summarizes the process which Plexus follows when reviewing, vetting, and documenting a transaction once the principals have been presented with an investment opportunity:

1. Thorough review of business plan to develop initial list of questions and to identify key issues
2. Conference call with the management team to discuss the business and to ask specific questions
3. Face-to-face meeting with management at the company to further discuss the business and to address additional questions
4. Preparation and negotiation of a term sheet issued by Plexus
5. Engagement of accounting due diligence team to perform a quality of earnings of the business
6. Compilation and report of due diligence information
7. Drafting and negotiation of the necessary legal documentation for the investment
8. Thorough due diligence performed by Plexus, both on-site and off-site
9. Closing and Funding

The timeframe from initial receipt of the business plan to issuance of a term sheet varies, but is typically not longer than 30 days. Once a term sheet is signed, it typically takes 45 days to close – this time frame can vary due to a variety of reasons.