The ultimate goal of the review process is to fashion a unique loan product which meets the unique needs of the company. Throughout his career, he has built a network of best-in-class freelancers and agencies in Europe and the US that he deploys to deliver marketing solutions to Eastward's markets. Discussion of the ultimate exit plans including potential acquirers Rob oversees the entire marketing function for Eastward Partners, supporting the business to grow talent pools, win new clients and drive revenue.Status or future timing of any fundraising efforts.Current and forecasted financial results.An overview of the products, target markets and competitors.During the presentation, the management of the company will provide the Eastward team with: As part of Eastward’s initial due diligence process, the team will review information including investor presentations, financial statements, and the company’s equity structure.Īs a next step, the company will make a presentation to the entire Eastward team. This approach is unlike that used in evaluating traditional bank loans where the lender focuses on the collateral and profitability of the company. Typical covenants include cash covenants (significant minimum cash balances) or profitability/revenue covenants (minimum sales levels or profitability requirements).Įastward’s loan review process focuses on the value which has been created thus far by the company as well as understanding the future growth curve of the company. Failure to remain in compliance with covenants can lead to greater control of cash balance or operations or additional fees to amend existing debt agreements. Traditional banking facilities often include significant covenants, which the company must comply with and document on a monthly basis. Eastward also conducts quarterly discussions with Senior Management to provide further monitoring of a portfolio company.
Temperatures jump into the 80s with higher humidity. After funding of a facility, the company provides Eastward with the same financial and operational reports provided to the Board of Directors rather than submitting additional monthly covenant compliance reports. A line of severe storms develops this evening and tracks eastward through sunset. The terms of the loans made available between Eastward and a traditional bank may be significant and should be carefully reviewed.Įastward loan facilities are covenant light or do not include any covenants. Eastward Partners is a venture backed, retained Executive Search and Human Capital Consulting firm with offices in New York City, Miami, and Chicago. Many companies evaluate the difference between venture debt and bank debt.
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