FDI For Investors
For individual investors looking to broaden their portfolio, then foreign direct investment is often a suitable approach. Here at Cross-Border, our aim is to help you invest in new businesses in different parts of the world and facilitate a smooth transaction. We can help with all the steps of the process and liaise with all parties involved to make your experience a simple one.
The start of our process behind with the deal origination and sometimes this can involve a number of different sources. Deal origination is key to the success of an investment and it hinges on having the right contacts, knowing the right people and having a network of sources to find the right deals. This is something Cross-Border can do for investors. We work with government agencies, venture capitalists, parent organisations, trade partners and even through friends and network connections. We also actively seek deals through sources such as trade fairs, seminars, conference and foreign resist. Finally, we can use a network of potential entrepreneurs who can be a good source for deal origination.
Once the deal origination has been conducted, then the work of screening begins. This crucial second step is where we look into the details of a particular deal to see the scope of the market, the size of the investment available as well as other areas such as geographical location. Our system is to ask the project organizer to provide a full profile of the investment project that they are proposing. This will establish the eligibility of the project and may even involve an in-person meeting between parties to clear up any questions and queries.
The initial screening process then gives way to the detailed evaluation where Cross-Border and the investor can carry out a series of comprehensive checks. The profile of the project, the track record of the parties involved as well as the future feasibility of the project can all be assessed at this stage to ensure the satisfaction of everyone. Part of the evaluation process is looking at the long term vision of the project as well as the skills and abilities of those involved with it. Areas of investigation can range from the background back and proven track records of the parties involved through to the finance projection and post activities and also a look into the future.
Once all parties are happy with the screening and evaluation of the project, then the discussions can turn to deal negotiation. Here Cross-Border can work with the investor and the project organizer to form the terms of the deal and the price of any investment. It is in this part of the process that the most delicate details are put into place. This may be areas such as the right to control the company by the investor and the right to buy back the business by the project organizer. We seek to ensure all deal terms are satisfactory to all parties and that they safeguard everyone into the future.
Our work at Cross-Border doesn’t end once the deal is in place – we continue to offer our services for post investment activity for our investors. This means we will assist with the monitoring of the investment performance as well as areas such as the level of communication required. Dealing with the project organizer is something that investors sometimes like to do themselves or to delegate to ourselves. We can assist the investors help with logistics, problem solving as well as mentoring and coaching advice where required by both parties.
At the end of the deal, Cross-Border can assist with the exit strategy for the investor. Many investors have a limited understanding of the importance of the right exit strategy but we have the knowledge to fill that gap. The saying about ‘starting with the end in mind’ is very much at the centre of what we do. Our aim is to increase the chance of a premium exit for an investor and we have the knowledge to help create this situation. We also look at what happens if the best plans don’t come to pass and look at the best strategies for all situations, ensuring the best and fairest deal for all parties.