For a sufficiently prepared issuer or project sponsor, the Transaction Scoping Discussion tests whether a defined capital requirement can support a credible structuring and execution process.
Preliminary scoping | No funding commitment | Formal mandate subject to acceptance
Review area | Focus |
Funding objective and use | Purpose, amount, evidence, implementation plan and ability to monitor deployment. |
Issuer and ownership | Correct legal issuer, assets, obligations, ownership and reporting responsibility. |
Capital structure | Preliminary fit of equity, debt, hybrid, project finance or phased capital. |
Economics | Valuation, dilution, repayment capacity, cash flow, duration and potential exit. |
Readiness | Corporate records, financial information, approvals, management, contracts and data room. |
Execution | Professional parties, regulatory route, diligence, market engagement and closing sequence. |
Appropriate for established businesses, Platform Companies, project sponsors and institutions with a defined capital purpose and material financial information. It is not intended for undeveloped ideas, requests for guaranteed funding, mass-market solicitation or transactions without a defined issuer and use of proceeds.
The scoping discussion is most useful where management can distinguish verified facts from assumptions. Financial figures should be traceable to management or audited records; the proposed issuer should have a clear legal and ownership position; and any project, contract, concession, asset or licence relied upon should be identified accurately. Where information remains preliminary, that limitation should be stated rather than presented as confirmed.
Provide the capital objective, proposed issuer, use of proceeds and current readiness position.
