To consider prospective business plans by the EPF investment committee, during the presentation, the EPF will review the plans subject to the following procedure:
- Review of Promoters (Entrepreneur) Often good business ideas fail due to improper management. The Promoters and Management of an investee company are critical to the success of the company. Therefore, certain attributes of the promoters will be gauged.
- Overall review of business plan
- The competitive advantage, strengths and weaknesses of the product/service will be reviewed.
- Market analysis for the product/ service will be carried out.
- Financial analysis of the plan will be conducted.
- Initial enquiries: The following initial enquiries will also need to be obtained and discussed:
- Expectations from the Fund.
- Total capital requirement and its proposed usage.
- Proposed financing structure (debt/equity)
Based on the above, only the potential business plans that have been considered by the investment committee for possible funding, a Confidentiality Agreement will be signed and shall proceed to the next step.
Stage 2 & 3
The detail review and due diligence of these potential business plans will be carried out followed by further enquiries and advance negotiations.
After the final negotiations, the Investment Agreement will be signed