Post-2008, the financing environment for small-cap companies is very challenging. But, these 3 things needlessly complicate matters for CEOs and CFOs:
- Due to systemic conflicts of interest, it’s virtually impossible for any small-cap company to obtain objective guidance about its financing prospects;
- In contemplation of a financing, small-cap management teams are often forced to simply speculate regarding what financing terms are likely, how much money they can realistically raise, and what steps can be taken to positively impact financing terms; and
- Even after finally securing a term sheet, CEOs and CFOs often struggle to garner board approval given the disparate capital markets and corporate finance experience in many small-cap boardrooms.
StreetCheck™ is a first-of-its-kind evaluation tool that empowers small-cap companies with a timely, cost-effective, objective assessment of a company’s financeability. Third Creek Advisors, LLC is uniquely suited to provide StreetCheck; Third Creek’s founder, Adam J. Epstein, co-managed special situation hedge funds that invested in more than 500 micro- and small-cap financings, and wrote a category-defining book about small-cap capital markets and corporate finance.
StreetCheck’s proprietary analysis provides C-suite executives with an unbiased assessment of how much capital a company can likely raise in the equity capital markets, using what likely financing structure, and on what likely financial terms – before a company even begins the capital-raising process.
StreetCheck is devoid of the conflicts of interest that pervade the small-cap ecosystem. Since Third Creek is not a broker-dealer, StreetCheck is not rendered with the intent to garner subsequent transactional fees. Third Creek charges a simple fixed fee for StreetCheck; there are no ulterior inducements that affect the integrity of results.
StreetCheck is based upon, among other things, an analysis of:
- A company’s most recent Form 10K, Form 10Q, and Form DEF14A;
- Recent quarterly results PR;
- Macro markets/industry snapshot;
- Recent financings undertaken by similarly situated companies; and
- Management’s investor presentation.
StreetCheck results are delivered orally during a conference call or during an in-person meeting.