The Process
1. Target Selection
The first stage is done internally and consists of identifying various Targets within the sectors Vela Capital identifies as most interesting.
2. Competitive Scenario and Analysis
In this phase the information publicly available on the various identified Targets and the competitive scenario is analyzed not only in the Country of residence of the Targets but also internationally.
3. First Exploratory Contacts
Once the Team is convinced of the interest in the Target, then the Target’s entrepreneur/top management are approached in order to see whether there is the possibility/interest in teaming up with Vela Capital.
4. Assessment
Key factors to be considered are, non exclusively: the chemistry between Vela Capital’s Team and the entrepreneur/management, the value of the management, the product, the future plans both as product development and commercial expansion with relative future economic returns and few other parameters defined according to the specific Target.
5. DD Activities
If everything is according to requirement from both parties, generally a LoI is signed and a proper DD is started.
At the this same time Vela Capital involves potential investors in the SPV.
6. Legal & Commercial Negotiation
Once the DD period has terminated positively the commercial and legal negotiations, the process should lead to a closing of the transaction.
In the legal negotiation various point are tackled including divesting clauses.
Stay In Touch