Compensation
How we do business.Fee for Service Format
Funding Process Management is a fee for service company. Our policy is that we do not accept any form of equity or debt in a client Company. We do not charge or share in any commissions. This is the only way to eliminate the conflict of interest and maintain an independent assessment.
FPM charges $100 per hour to compile and document information about your company into a Due Diligence Binder. We estimate that the time spent on creation of this binder is about 35 hours including research and comparables or $3,500. The majority of time in creating a due diligence binder is in finding all of the information. We suggest that your office staff performs this function to save time and money. FPM is available for phone consultation, and we will work with your staff to assemble all the needed information.
All materials generated by FPM are the property of FPM and may not be reproduced or used for any other purpose other than the documentation of the sale of a customer’s business. Materials are only to be shared with potential buyers of your business unless permission is given in writing from FPM.
Web revision work is on an hourly basis. The current rate is $75 per hour, or on an agreed price to complete a project. This includes all copy, editing and graphics or as per agreement.
No Equity Participation
FPM does not request any equity positions in a Company that uses our services. We are strictly compensated either by the job or hourly retainer. This is to guard against the perception that FPM has a vested interest in a customer’s business. Although we act as an advocate for your Company, we do not want to be seen as bias or promoting the stock of your Company for financial gain. This practice gives our services weight in the investment community.
No Commissions
Because of our extensive experience in the securities industry, FPM and its agents are considered “in the business”. This means that any percentage interest of a transaction would be considered a securities commission, which requires a broker dealer to sponsor. Since we are only involved in the creation of documentation and presentations for the customer, we are not involved in any commissions. Some of our customers have sold their businesses themselves, while others have relied upon business brokers. In either instance, FPM does not participate in commissions or finder’s fees. We welcome working with business opportunity brokers, broker dealers, attorneys and accountants. We are all part of the same funding process.
Getting Started
FPM requires a retainer of $1,000 to produce a complete due diligence binder for a Company. Due Diligence Binders range from a total cost of $3,500 to $6,000. For additional services that are beyond the scope of the Due Diligence Binder, FPM offers hourly rates are $100 per hour for one on one consulting which may include coaching of the board, presentation assistance, negotiations requiring first person interface.
Research time rates are $50 per hour. In addition, phone questions and Skype conference calls are also at $50 per hour.
Due Diligence
Due Diligence is the organization of the facts of your company. It covers the backgrounds of all officers and directors, technology overview, projections of future growth and the budget necessary to achieve these corporate goals.
The documentation is comprehensive and takes a minimum of 35 man hours to compile. We deliver the Due Diligence Questionnaire so that your team can gather the majority of the needed information, then we gather and edit what you have and format this into a professional package for potential purchasers of your business.
THE AVERAGE PRICE FOR A DUE DILIGENCE BINDER IS $3,500.00
Website Revisions
Websites are the first impression that most potential purchasers of a business encounter. If your website is out of date or ineffective, it is a good idea to revise your website to support your marketing efforts in selling your business. We find that it is much better in most cases to spend some time on your website to make sure that it helps you to make the best first impression.
FPM employs a top internet marketing executive from an international company to revise and optimize your website. This service is subject to executive availability and must be scheduled in advance of any deadlines.