What is UNIRISCO’s investment process?
Investments are selected by using the most sophisticated investment analysis techniques. To achieve this, UNIRISCO draws on the experience of the University of Santiago’s business promotion group, UNINOVA, in analysing projects and works with the company’s financial and promotional bodies.
The investment selection procedure is laid out in the following phases: the locating of investment opportunities, project viability analysis, due diligence and structuring of the investment.
Detecting investment opportunities
In this phase, initial contact is made with the company and its promoters. To begin with, a presentation is made of UNIRISCO, its objectives and its methods. At the same time primary data concerning the company or potential business project and its board or promoters is collated.
This information will be analysed by UNIRISCO, acting as a filter to move on to the next stage.
UNINOVA, the University of Santiago Business Initiative Promotion Group, which, since 1999, has striven to identify potential business projects from the results of research, will play a key role in the Opportunities Detection phase.
The University of Santiago’s Innovation and Technology Transference Centre (CITT) and the University of Vigo’s Research Findings Transference Office (OTRI) are other organisations which also focus on the detection of investment opportunities.
Project Viability Analysis
UNIRISCO will analyse project viability by centring on the
- Technical and management ability of the entrepreneurs and/or the management team.
- Degree of innovation in the business project, leading to success in the market in which it operates.
- Scope for company growth and profitability prospects.
- The existence of a stable and verifiable Business Plan.
Once a project has been selected, a negotiation phase begins with the aim of establishing the means and the size of the investment. This process can be preceded by a non-binding offer by UNIRISCO or by the signing of a letter of intent.
This will enable UNIRISCO to carry out a more detailed analysis of the project in question.
Depending on the complexity of each project and the size of the investment, the analysis will include some of the following aspects:
- Visits to the facilities.
- Interviews with the management team.
- Study of the product market or business service.Occasionally, this study will be carried out by an independent person with recognised expertise in the field.
- Legal review of aspects concerning corporate law, contracts, insurance policies, real estate, industrial property, litigation, grants and employment and fiscal aspects, carried out by an independent person with recognised expertise in the field.
- Audit carried out by an independent person with recognised expertise in the field.
- Analysis of the financial projections and the possibility of their being achieved.
- Project evaluation.The review of the previous points will form the basis of negotiations concerning the final structure of the operation.
Once all the information has been analysed and agreement has been reached with the shareholders, a contract will be drawn up setting out the size of the investment, the financial instruments to be used, disbursement periods, the guarantees of the company or shareholders, changes in the articles of association and disbursement agreements, amongst others.