Finial Capital's integrated acquisition process, which it performs on each potential investment opportunity across various key sectors, has been developed through the experience of its in-house deal team. This process allows Finial Capital to underwrite, structure and execute complex transactions efficiently. Equally important is our asset management approach which enhances the value of each investment through proactive initiatives such as asset refurbishments (please see the Manotel Group section) or company board-level involvement in the case of corporate investments.

A description of Finial Capital's activities during each stage of its investment process is described in detail below.

Transaction Sourcing

Finial Capital takes a proactive approach toward sourcing investment opportunities, and generally leverages its network of advisory, banking, brokerage and other relationships to generate investment opportunities. Because of the diversity of Finial Capital's investment themes, we believe that relationships play a critical role in successful deal sourcing.

Transaction Screening

Finial Capital uses a variety of criteria to determine whether a potential transaction should be pursued. Key considerations include whether there is an opportunity to add value, whether a transaction is competitively bid or privately negotiated, available exit strategies, as well as attractive risk-adjusted economics.

Due Diligence and Underwriting

Comprehensive due diligence is performed on each potential transaction by the deal team which leverages its extensive private equity experience. For example, the due diligence process for a hotel acquisition will generally include site visits; rental and sales comparisons; a comprehensive business plan formulated in-house with Manotel Group; a property condition analysis and an assessment of any other issues such as environmental condition and zoning requirements. In the case of corporate acquisitions, thorough financial and accounting due dilligence is undertaken; legal and tax assessments are conducted; a detailed financial analysis is performed; and local market experts are consulted. Finial Capital therefore develops valuable relationships with third-party due diligence partners, to supplement internal resources and generate further investment opportunities.

Transaction Closing

Once due diligence is complete and all parties agree to the transaction terms, the transaction is closed. The deal team will consult with the potential debt provider if third-party financing is raised, it will also evaluate and potentially hedge currency and interest rate risk.

Asset Management

Finial Capital will typically seek to enter a transaction that offers accretive asset management opportunities. An example of this is the Manotel Group hotel portfolio which went through a CHF 100 million refurbishment plan from 1999 to 2009. This illustrates that Finial Capital invests where value can be actively added, rather than having to rely on market improvement. Equally, with a corporate transaction, Finial Capital will pursue specific initiatives defined at underwriting, through Board representation and value-add involvement in the company's strategy and operations.

“It is the people that drive the deals, not the reverse”