But our elevator pitch is this — during financial transactions most of the workflows, tools, and communication channels are unorganized. We set out to create one platform where the entire end-to-end process of a project can be completed, saving the principal users significant time and money.
One Integrated Solution
Let’s take an M&A deal for example.
Imagine Wayne Enterprises wants to acquire the applied sciences division of Stark Industries. Both sides will likely have advisors, their core teams, internal and external tax consultants, internal and external legal, and so on.
The team from Wayne will have to put a valuation on the acquisition target so the team from Stark will have to share all the relevant documentation once non-disclosures are negotiated, signed, and executed.
Legal documents will need to be reviewed by both sides, financial documents will need to be audited by 3rd parties, terms of the sale will have various rounds of negotiation with final contracts and reps and warranties that could fill a library.
All the while, each side will have its own internal processes they have to follow for due diligence and internal sign-offs.
So needless to say, this is going to be a complicated transaction with a ton of moving parts.
The issue for both Wayne Enterprises and Stark Industries is that managing the process is a full-time job that will inevitably become very expensive and time-consuming.
We built Capcade so this entire process can be streamlined on one platform with the various elements needed to complete the transaction linked together to create one smooth journey.
We’ll discuss some of those major components below.
Virtual Data Room (VDR)
Capcade’s VDR enables the principal user to control the follow of information during the due diligence process. Advanced access management enables the principal to grant visibility to the file level for internal and external users.
The main benefit is that once a VDR is set up and organized — a process that could take minutes — managing the information flow for several parties is easily done with a control panel.
Creating the VDR happens with a few clicks. Users can upload existing folders, create folders, drag-and-drop files, and have colleagues directly drop files into the VDR using a unique email address.
A VDR to manage your files is great during the deal process but what sets Capcade apart is that you can attach a VDR to the actual terms of the project.
Entering the terms of the term sheet is incredibly easy and flexible. Users can enter the basic details quickly in order to start working on the project or a deep dive into specific terms can be done upfront to make clear what is required for potential counterparties.
Also, it’s important to note that the templates of the request can be easily tailored to each organization’s needs.
If financing or refinancing is needed, the request can be published — -with a level of anonymity — to Capcade’s verified and curated marketplace.
Potential funders or financiers can see the basic details of the terms and request access to engage further.
The marketplace can be browsed by asset class, deal size, location, industry, or ESG criteria to ensure that quality matches are made.
If both sides agree to NDAs, the principal can unlock files in the data or offering documents to move the process further.
A critical element of Capcade is the ability to control the access of data.
Organizations on Capcade have robust yet easy-to-use access management to control how people inside and outside their organization access files.
For example, when a VDR or an offering document is made, Capcade users have a single snapshot privacy matrix where they can easily manage what level of access stakeholders have, all the way down to a file or page level.
Once a term sheet is created and the principal user is engaging with potential counterparties, negotiations can commence on the platform.
The offers threads provide a handy reference to keep track of agreed-upon terms so both sides can work quickly to a deal.
Organizations can ensure that only authorized team members can submit and respond to offers and eventually sign term sheets or contracts.
Post-closing Reporting and Compliance
The beauty of Capcade providing the ecosystem for financing during the deal process is that the same ecosystem can be leveraged post-closing.
In many cases, reporting and compliance are critical and will be a multi-year process.
Capcade’s reporting and compliance module enables the reporter to submit compliance documents automatically to a VDR and for the reviewer to automatically check documents to see if the report is still in compliance.