Requirements

Requirements

These are different requirements that vary from investor to investor.

General

  • A very brief history and Overview of the Group and its business activities.
  • A detailed Group Structure, reflecting all shareholders, OpCo’s, PropCo’s, Trusts and collateral providers.
  • Details of Facilities applied for:
    • Group company name/s
    • Facility types and levels, e.g. Overdraft – R2m.
    • Purpose of required facilities i.e. acquisition/working capital etc.
  • Detailed list of all current interest-bearing debt (‘IBD’) – if any:
    • Name of Group Company.
    • Name of credit provider / shareholder / related party / 3 rd party.
    • Products and facility amounts.
    • Collateral held by institution / shareholder / related party / 3 rd party.
  • List collateral on offer. Please include all properties, including anticipated market value:
    • If collateral is provided by another entity, then financial information of that entity / surety (unless it is included in the consolidated group financials). See next 2 bullet points.
    • Personal Assets & Liabilities Statement (PALS) - iro each individual surety-ship provider  - if any.
  • At least 2 years’ audited/reviewed Annual Financial Statements of applicant – and guarantor Group Companies, i.e. parent company, client company/ies and guarantor companies.:
    • Detail on financial performance where there are material deviations (positive or negative).
  • Latest Management Accounts (not older than 3 months) of parent company, client company/ies and guarantor companies. In order to discount the management accounts it should meet the following criteria:
    • Be for a 6 month period at least (if possible);
    • Consist of both an income statement and balance sheet;
    • Include comprehensive notes;
    • Ideally signed by financial function (Accountant and/or Auditor and/or Financial Manager and/or Financial Director and/or Chief Financial Officer);
      • Details to be provided where management accounts deviate from last issued financials (if applicable).
  • Target margins, i.e. Gross Profit, EBITDA and Net Profit.
  • Budget or cash flow forecast for the next financial year:
    • State 4 or 5 forecast assumptions clearly.
    • Reflecting need for any Overdraft applied for.
    • CAPEX: With Capex please indicate self-funded amount and external funding required. Split between ‘Maintain’ and ‘Expand’ Capex.
  • Dividend Policy.
  • Latest Debtors Age Analysis list iro applicant company/ies.
    • Indicate terms and add one sentence comment on those debtors in excess of terms.
    • Clearly indicate offshore debtors.
    • Detail to be provided where a specific debtor makes up more than 10% of the book i.e. are there contracts in place, etc.
  • Details of any Debtors Insurance (e.g. CGIC).  If possible, please provide copy of policy.
  • Latest Creditors Age Analysis list iro applicant company/ies.
    • iIndicate terms and add one sentence comment on those creditors in excess of terms.
    • Clearly indicate offshore creditors.
    • Detail to be provided where a specific creditor makes up more than 10% of the book i.e. are there contracts in place etc.
  • Info on the Management team and structure thereof (i.e. one or 2 sentences iro each member of the Executive, i.e. age, experience, qualifications, etc).
  • Copy of BEE certification / or planned BEE certification.
  • Copies of last 3 months’ bank statements from current banker.
  • If possible, list Contracts / Offtake Agreements / Copy of any Order Book.
  • Details of Main competitors and Trading Advantage/s over competitors.
  • List 2 Key Risks and Mitigants.
  • Internal SWOT (Strength, Weaknesses, Opportunities and Threats) analysis (if possible).
  • Brief Industry Analysis in which company is operating/trading (if possible) – current as well as future outlook.

In the case of Acquisitions / MBO’s etc., please remember to add the following ADDITIONAL points to the above e-mail template – please provide the following as well:

  • Copy of Due Diligence Performed to determine Purchase Price and Conditions Precedent in respect of the acquisition of the Target:
    • Clear understanding required how Purchase Price was determined.
    • Salient results of the Target’s latest AFS and management accounts.
    • Due dates of when payments are to be made (include on forecast listed above).
    • Level of Own Contribution by purchaser toward Purchase Price, and source/s thereof.
  • Copy of signed Sale of Business Agreement. (or Sale of Shares Agreement if applicable).
    • Details of Conditions Precedent / Events of Default / Profit Warranties, etc.
  • Business Day-1 Group Structure (post the acquisition).
  • Business Day nr. 1 pro-forma balance sheet of company being acquired (or consolidated day 1 balance sheet, depending on structure).
  • Last 3-months bank statements of the Target.
  • Confirmation that sale was advertised in terms of Section 34 of the Insolvency Act (if Sale of Business).
    • If not done, it must be a Condition Precedent.
  • Detailed list of all contracts / offtake agreements / purchase orders / order book iro the Target,  specifying in terms of each:
    • Quantum (in ZAR) / Date signed / Remaining tenor.
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