|
Page
4 From 5
Exit
Strategy and Repayment Program
Equity and Quasi-Equity
A clear and definitive exit strategy must be foreseen prior to
ICD undertaking any equity investment. In any event, the point
of exit must not exceed seven years from the date of implementing
the investment.
The exit route may be through any of the following:
i. Public flotation on a stock exchange.
ii. Private placements.
iii. Put options/Buyback options
to be entered with the sponsors of the project/company.
iv. Redemption of the investment
by the company (for quasi-equity).
v. Management Buyouts.
Term Financing
The structuring of the repayment program should be based on the
repayment capability of the client and will either be in the form
of:
i. Equal installments (either monthly,
or quarterly or any other fixed interval period).
ii. Repayment in the form of ballooning
basis.
iii. Lump sum (bullet) repayment
from definite sources.
iv. Repayment through redemption
of certain percentage of revenue stream.
Page
1
2
3
4
5
|
