The CMA is part of a proven Deal Screening Process that scores and rates your business as a financing candidate. Our CMA accomplishes the following for you:
Our Capital Markets Assessment is built on a Multipoint Evaluation Process similar to the system used by FICO for credit evaluation. We then apply it to a scoring system similar to Moody's Rating System.
All deals receive a score, and each financier determines the minimum scores they will accept to finance a deal. ValuCorp scores all sources of capital pools under the same system to remove any subjectivity.
| Rating | Points | Audience |
| AAA | 950-1000 | All Financing Sources |
| AA | 900-949 | |
| A+ | 850-899 | |
| A | 800-849 | A and B Grade Financial Sources |
| A- | 750-799 | |
| B+ | 650-749 | |
| B | 550-649 | B Grade Financial Sources |
| B- | 450-549 |
If you have a B Grade Deal and are unwilling to take the necessary steps to upgrade to a higher score, then you should lower your expectations about completing a transaction because there are fewer capital sources willing to accept B Grade Deals. Typically, if a B Grade Deal is accepted, the costs are much higher than an A Grade Deal. If your rating is below a B- Grade Deal and you're not willing to do what is necessary to move up to at least a B- Grade, then it is highly unlikely you will complete your transaction.
A summary of the ten areas comprising the scoring criteria is shown in the following table along with the maximum score for each and the actual score a client company achieved.
| Category | Weight | Category Score | |
| Max | Actual | ||
| Business Valuation | 10.0 % | 100 | 43 |
| Critical Valuation Report | 10.0 | 100 | 43 |
| Due Diligence Review | 5.0 | 50 | 50 |
| Management Team | 25.0 | 250 | 160 |
| Deal Potential | 30.0 | 300 | 153 |
| Market Size | 2.5 | 25 | 5 |
| Competition | 2.5 | 25 | 25 |
| Growth of Industry | 2.5 | 25 | 5 |
| International Markets | 2.5 | 25 | 100 |
| Competitive Advantage | 10.0 | 100 | 100 |
| Total | 100.0% | 1,000 | 608 |
The specific category values and constituent component values are given in the Assessment along with a more detailed definition of how the score value is derived.
Once you've completed our Deal Screening Process, you can investigate several alternate financing opportunities. Please note that deals are structured using one or multiples of various available instruments to maximize returns at the lowest possible risk to all involved parties.
Alternate financing includes:
| Venture Investment Debenture investment Initial public offering (IPO) Reverse mergers Sale of certain assets Sale of all stock Sale of company assets Divesting a division Line of credit Debt financing | ESOP Mergers Acquisitions Franchising Recapitalization Distribution alliances Marketing alliances Joint ventures R&D joint ventures Exclusive technology licenses |
We will state our recommendations to you very clearly before we create a deal structure. This will give you the opportunity to take necessary actions to move your business to a higher score before taking the next step.