Our process is designed to enable both of us to make quick decisions. Essentially it involves answering the following questions:
- Does your opportunity fit what we are looking for?
- Can we work together?
- Can we agree a deal that works for both of us?
The better prepared you are when you contact us, the easier the process. The steps involved are illustrated below. A go / no-go decision could be made at each stage of the process:
- YOU check that you might fit our criteria – see the Criteria page of this website and check our blog postings
- YOU complete our preliminary questions and send Mark an email – see questions below
- WE meet and conduct preliminary analysis
- WE agree high level terms
- WE undertake due-diligence
- WE negotiate investment documents
- WE make investment
Our preliminary questions
In order that we can assess the fit of your idea or business we request that you please complete the following questions and email your response to us. At Movac we look for opportunities to invest in Companies that have the potential to win and defend a dominant market position, long-term, backed by a balanced, experienced and capable team. To help us assess this we request that you respond to the following questions. If you have an existing Information Memorandum or Business Plan that provides this detail you can go ahead and send that in.
- Summary – provide a one paragraph summary of your business and your key point of difference i.e. your elevator pitch.
- Business State – please describe the present state of the business in terms of product development, sales and team.
- Market – describe your target market, it’s size and growth forecasts, the problem you will solve for customers, how you will reach your customers and how you think you can defend your market position long term. If you have existing customers or relationships for market development please provide details. If you don’t have this yet tell us “who else likes your product or service”.
- Competition – identify your major competitors and how you differentiate against them, explain why you think you can beat them.
- Intellectual property – define any intellectual property you have developed – tangible and intangible. If you have registered patents please explain the state of these.
- Team – please provide profiles for the key people responsible for driving the business forward. Capability and experience of the team is a key criteria for us.
- Financial potential – please summarise your expectations for revenue growth and profitability over the next five years. We appreciate that these may be guestimates but a good business plan will at least identify the early customers and have identifiable actions / resources in place to drive growth.
- Capital required - please indicate how much capital you are looking for now, how much more you think you will need in the future and what you will use the capital for.
- Liquidity – Movac invests for long-term growth However, our experience is that the needs of investors change over a time and a long-term plan is needed to bring liquidity to privately held shares. Please define what you see as the options for providing shareholders with liquidity should they require it in the future. Where possible provide evidence (comparable transaction data) of trade sales or listings that have occurred in your industry segment before to support your thesis.
Please send your response to Mark.
