Jefferson Capital Partners prefers to receive a business plan as the first step during the review of an investment opportunity. A business plan provides JCP with an efficient means to evaluate whether an investment opportunity fits within JCP's investment philosophy. Additionally, a business plan allows JCP to better prepare for an in-person meeting with company management should such a meeting be warranted at a later stage in the evaluation process. Business plans sent to JCP should contain an executive summary, a description of the business (with an emphasis on the market opportunity, competitive position, and sales and distribution channels), biographies of management, historical and projected financial statements, and a detailed explanation regarding the intended use of investment proceeds.
If after JCP reviews a business plan, it determines that the company fits within JCP's investment philosophy, JCP will typically meet with the prospective portfolio company's management team to develop an in-depth understanding of the investment opportunity. If after an in-person meeting with management, JCP still believes that the investment opportunity is consistent with its investment philosophy, JCP will begin an extensive due diligence process with the company. The company, its business plan, and relevant industry and competitive data are evaluated during due diligence. JCP uses a thorough financial modeling process to assess the prospective portfolio company's major operating assumptions. If during due diligence, JCP and the company reach an agreement in principle, JCP will complete its due diligence concurrently with the drafting of the legal documents necessary to consummate the investment.
JCP understands that time is often a management team's most precious resource. If during the investment evaluation process, JCP determines that an investment opportunity is not consistent with its investment philosophy, JCP will immediately cease the evaluation process and communicate the lack of fit to company management or its representatives. Regardless of whether or not an investment is consummated, JCP strives to make the investment evaluation process timely and efficient. In successful transactions, the entire due diligence and funding process can typically be completed in approximately 90 days.
