Written Mandate

Financial Technologies (FT) only operates on a written specific Mandate from the Beneficial Owner of the concerned Enterprise. FT firmly believes that a written Mandate commits both the Client and the Advisor to professional conduct, thus creating the ideal conditions for deal closing. Those who act without a specific mandate always act indefinitely, therefore opening door to misunderstandings. FT believes that a written mandate induces a significant disciplinary effect for both the Client and the Advisor, creating the best conditions to operate professionally and to achieve credibility with third parties.
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Pricing and business risk

The business risk remains exclusively by the Client. As an Advisor, FT is compensated for its professional contribution and the value added to the Client’s perspectives. Once FT has understood its Client’s expectations, FT and the Client jointly establish in advance FT compensation. The latter is based on a recurring structure: a Working Fee (for the resources employed in each specific Mandate at different stages) plus a Success Fee (only due in case of positive outcome). Internal company policies do not allow FT to accept any kind of Mandate where FT personally bears a business risk. Such a situation may jeopardize both the status of neutrality of the Advisor and its professionalism.
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Assessment & Business planning

Usually, before accepting any Mandate, FT accurately evaluates the expected perspectives in terms of success. In order to properly understand the exact operational framework of a M&A transaction, FT carries out an in-depth analysis of the strategic, industrial and financial plan with the purpose of developing a precise and satisfying Letter of Intents. This preliminary work is normally included in the first stage Working Fee.
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Objectives and expectations

One major mistake to avoid in Corporate Finance initiatives consists in trying to earn out profit from business Partners rather than in due times from execution of the planned strategies. In consideration of the huge investment in time and resources made by the project promoter, the above mentioned attitude is a comprehensible. However, the financial plan has to be built with a conservative approach. Both parties, Entrepreneur and financial Sponsor, have to be convinced about the bargain and they have to behave fairly and transparently. Major decisions have to be taken jointly and in a binding manner. The signature of a Letter of Intents does not represent warranty of deal closing: sometimes, unremarkable details open doors to unsolvable misunderstandings between Parties. Therefore, a transparent communication enables to prevent breeding ground for conflict. Moreover, since the prospected partnership could be not carried out, transparency must be granted also as far as exit schemes is concerned.
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Negotial lines and roles

Starting negotiations while being unprepared is a major risk to avoid. As an Advisor, FT does negotiate for the best interest of its Client. During early stage of negotiating activities, the presence of the Client aims at emphasizing technical and qualitative features of the initiative, thus improving interest by third parties. FT leads the negotiating activities is a skill, so that the Client does not inadvertently weaken its position during negotiation. The negotiating lines are jointly defined in advance by the Client and the Advisor, therefore the Client has to fully comply with the agreed upon negotiating lines and roles. Actually the Investors and their Advisors, who are habitual interlocutors of FT, are really clever in identifying and emphasizing the potential weaknesses of a project or a Client’s lack of networking skills (sometimes, such lack is involuntarily highlighted by the Client himself, who doesn’t know the professional dynamics characterizing the intervention of the Advisor) and take advantage of this situation. A collaboration between a Client and his/her Advisor represents a nice challenge also from an emotional point of view. Mutual loyalty and respect are essential in building up customized and effective negotiations.
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Direct contact to the Beneficial Owner

FT accepts Mandates only after having personally known each Client/Beneficial Owner and assessed the consistency of the intermediary chain.
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Engineering of solutions

Technical instruments has to be employed wisely and prudently. Solutions have to be “tailor-made”, drawn on the Client’s profile and his/her priorities. FT usually works by means of accurate stress tests over a wide number of possible (expected and unexpected) business scenarios, enabling the Advisor to provide its Client with prime quality services and solutions.
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