Capital's Investment Components:
Due Diligence: Fawz Capital will undertake an extensive examination
of the target company's operations, and then seek to develop a thorough
understanding of the undertaking and its market, and where possible,
identify opportunities where operating profit could be increased
through revenue growth, acquisitions or operating efficiencies.
A financial model is prepared to include sensitivity analyses of
the potential investment returns in order to help determine an appropriate
valuation and capital structure for a proposed transaction.
Execution: Fawz Capital will determine an appropriate transaction
price, devise an optimal acquisition and financing structure and
negotiate the terms of acquisition. Where appropriate, an element
of debt finance may be introduced to the transaction structure.
Fawz Capital will seek to establish strategic priorities and business
focus and to determine ways of adding value to the business. Fawz
Capital will normally seek to be represented on the board of directors
of the target company to effect strategic decisions and implement
the changes which it considers necessary.
and Realization: Exit strategies anticipate that investments will
be realized through: Initial public offerings (IPO) and the subsequent
sale of quoted shares; third-party private sales to strategic buyers,
and recapitalizations. In most cases strategic exit will take place
within 3 to 4 years of the original investment.