Every engagement to raise capital taken on by Palm Tree Financial has its own unique requirements. A client's initial transaction may take anywhere from 60 to 180 days with 90 to 120 days being the norm. Subsequent transactions with the same partner may be accomplished in less time. The process generally takes the following steps:
Initial Contact and Documentation:
Palm Tree Financial Principals stand ready to speak with you about your company's immediate needs and future objectives. We will candidly discuss our capabilities and how we can help your business succeed. We look forward to learning about your firm and to assisting you in developing new long term relationships with institutional or private capital providers. If there is a potential transaction to discuss, we will review all documentation, the existing investment data and comment on the project, as well as, how the transaction might be structured to appeal to potential institutional or private equity capital providers. Initial Meeting:
There is no substitute for relationships that are developed through personal interaction. When possible, we prefer to schedule a conference call with all potential clients to further discuss the project and transaction in detail. In addition, this allows us to answer any questions potential clients may initially have regarding our equity programs and capital providers. This interaction gives both of us an opportunity to gain a level of comfort with each other as we move toward our respective decisions about our working relationship. Engagement:
Once we collectively decide to move forward, you will become our client. An engagement agreement will be executed permitting Palm Tree Financial to aggressively market your project or company to a select targeted group of equity investment firms. Investment Community Presentation:
Palm Tree Financial will work closely with you to develop marketing materials for presentation to the capital markets. Our intermediate goal is for potential equity partners to submit a non-binding term sheet outlining business points that will serve as a basis for a joint venture/partnership document. To that end, the Palm Tree Financial executives will walk potential investors through the transaction. Once direct discussions between our client and investor commence, Palm Tree Financial will lead you through the process.
Negotiating Joint Venture Terms:
After an appropriate term sheet is executed, Palm Tree Financial will assist you and your legal counsel through the process of negotiating and documenting a joint venture agreement. The document will set forth the terms of investment and returns to the partners. It will also set the groundwork for future transactions consummated between you and the investor. Anticipated Investor Internal Rate of Returns (IRR) Institutional Fixed Funds 20%-25% Institutional Opportunistic Funds 25%-30% Private Equity Funds 30%-35% or higher Equity multiple target with 3.0x's or greater
Minimum Equity Investment $20.0 million USD, no maximum Minimum Project Size $50.0 million USD, no maximum Origination Points 2.0%-3.0%
Initial Documentation Required to proceed to a Term Sheet:
Sponsorship Package -Bio's for all Principals (must include a list of current owned or previously owned real estate/businesses & experience), Bio's required on key employees -Financial Statements for Principals or Company -Credit reports for all Principals (within the last 90 days), (real estate and small private equity transactions only)
A completed Financing Request Form (see "Forms" tab at the top of this page). Executive Summary on the subject property/business or, Offer Memorandum on the subject asset if the transaction is an acquisition or merger
Color Photos of the asset and or color renderings Detailed Business Plan (private equity only) Detailed Sources & Uses of Funds Detailed Company Budget (private equity only) Detailed Construction Budget (real estate construction only) Detailed Construction Plans Five Year Detailed Performa Feasibility Study Business complete tax returns for the last three years Personal complete tax returns for the last three years on all Principals Current Business Balance Sheet and Profit and Loss Statement Previous Third Party Reports (if applicable) -Environmental -Engineering (property solutions report) -Appraisal -Owners Title Policy -General Inspections (roof, termite, etc,) -Survey Current Insurance Policies (copy of declaration page) Any other information you believe to be of importance please include
Private Equity transactions for publicly traded firms or privately held firms with annual gross revenue > $10.0 million USD do not require personal financial information on the principals.
Palm Tree Financial cannot complete a proper review and ultimately produce terms and or a quote we can stand behind without a complete submission package from you. Kindly submit a complete package electronically, we prefer all packages to be submitted via email/electronically, we do have the capability to receive large files electronically. If you are not able to generate some of the required documentation, Palm Tree Financial does offer documentation services (e.g. Performas, Executive Summaries, Source & Uses of Funds, etc), please visit the tab at the top of our website "Documentation Services Offered" for more details.
If you are a referring Broker you must complete the PTFC Referral Agreement and accompany the Referral Agreement with your submission (this agreement is only required on your first submission). You can find PTFC's Referral Agreement under the "Partner with Us" tab at the top of this page). PTFC will not review any financing submission without an executed referral agreement by the referring Broker and or Third Party referring source.
General pre-screen turn times are 3-5 business days.
PALM TREE FINANCIAL WILL NOT REVIEW ANY PROPOSAL FOR FINANCING THAT IS NOT A COMPLETE SUBMISSION FILE.
