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Driving Financial Excellence for Automotive Ventures
Automotive owner-operators and groups seeking substantial capitalization for growth and innovation
Our Automotive Ventures service delineates a structured approach for transitioning automotive industry owner-operators and groups from the U.S. private capital markets to the public capital markets. This includes privately held dealership groups with at least ten years of successful industry growth aiming for public listings to measurably increase their long-term footprint.
Our approach excels in architecting owner-operators and groups by preparing them for institutional capitalization and broker-dealer readiness, employing a cost-effective fixed fee and minor equity model. We specialize in structured finance and provide the necessary expertise to prepare each for public market capitalization.
The proposed securities in our program are structured to meet the strategic needs of automotive dealership groups and remove dealership franchise agreement risk while adhering to the relevant SEC regulations and NYSE and NASDAQ listing requirements.
Our comprehensive service includes developing essential technology infrastructure, detailed financial modeling, preparing securities offering documents following regulatory requirements, ensuring a secure and confident investment, and protecting ownership governance, control, and equity. We also produce professional presentation materials and video content to support the offering.
Our process ensures full compliance with all broker-dealer standards, facilitating the simultaneous capitalization of the project management entity and the energy ventures. This integrated approach is designed to optimize efficiency and reduce costs.
For more information, please explore our Blue Chip Program™ below.
Automotive Venture Categories
We accept a select number of qualified clients each year who seek significant amounts of capital from private or public markets. Our diverse client base includes Individual Dealer Owner-Operators, Medium-Large-Jumbo Dealer Groups, and Dealer Group Investment Funds. We also consider emerging categories that meet our qualification criteria, ensuring our clients are part of a dynamic and inclusive community.
Capital Market Tiers
While we strive to address the unique needs of each firm, our core expertise in Automotive Ventures lies in facilitating their transition into the U.S. public markets, enabling access to substantial capital swiftly and efficiently.
Our primary objective with every Automotive Venture engagement is the strategic re-engineering of your organizational structures. This approach is designed to mitigate fiduciary duty liabilities, establish, capitalize, and manage Automotive Ventures using customized technological applications, and design and implement your Automotive Venture for Direct Placement and Broker-Dealer acceptance, all while removing dealership franchise agreement risk.
By focusing on these critical areas, we ensure that your Automotive Venture is well-positioned to navigate the complexities of public market entry and capitalize on available opportunities. Our comprehensive methodology and expertise in structured finance provide a solid foundation for sustained growth and success.
Become familiar with these tiers to better understand how to leverage our expertise and transform your Automotive Venture potential.
Tier 1
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Broker-Dealers: ($1B+, public capital markets)
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Corporate Investors/Acquirers: ($1B+)
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Private Equity: ($100M+)
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Venture Capital: ($100M+)
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Family Offices: ($100M+)
Tier 3
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Broker-Dealers: ($5-25M+)
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Corporate Investors/Acquirers: ($5-25M+)
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Private Equity: ($5-25M+)
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Venture Capital: ($1-25M+)
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Family Offices: ($1-25M+)
Tier 2
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Broker-Dealers: ($100M+, public capital markets)
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Corporate Investors/Acquirers: ($100M+)
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Private Equity: ($25-100M+)
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Venture Capital: ($25-100M+)
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Family Offices: ($25-100M+)
Tier 3 Other
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Affinity Groups: ($5-25M+)
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HNW/UHNW Individuals: ($5-25M+)
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Angel Investor Groups: ($500K-25M+)
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Friends & Family: ($50K-5M+)
Qualifying Standards
Operating Companies pursuing private or public market capitalization must first undergo a comprehensive diagnostic analysis via our Broker-Dealer Readiness Rating System™. This process evaluates their rating and readiness for broker-dealer engagement. To be eligible for consideration by our Investment Policy Committee and qualify for our Blue Chip Program™, businesses must meet our stringent criteria and the following three minimum Qualifying Standards.
Minimums
Capital requisites must align with the minimum thresholds established for Tier 1 or Tier 2. Additionally, companies must achieve a minimum BB grade on the BDR Rating™, which is derived from our Broker-Dealer Readiness Rating System™ diagnostic analysis. Notably, companies with lower ratings may still be considered, subject to other compensatory qualifications.
Proceedings
It is requisite that the company, its officers, nor its directors be involved in any criminal or major civil legal proceedings at present or within the preceding year. This critical requirement ensures the integrity and full regulatory compliance of potential partners, strictly aligning with our stringent corporate governance and ethical standards.
Regulatory
No administrative actions have been imposed by any regulatory body against the company currently or within the last year. This stipulation is crucial to maintaining compliance and upholding our high standards of corporate conduct, ensuring that all potential partners meet the rigorous regulatory expectations set forth by governing authorities.
Navigating the Path to Capitalization
Mitigating Risk, Ensuring Regulatory Compliance, and Maximizing Value
No matter the scale of private or public capital sought, the process of capitalization is grounded in five critical professional functions essential to every securities offering. These functions are designed to meet rigorous standards of regulatory compliance and market expectations, serving as the cornerstone of a successful capital raise.
Key Professional Functions
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Senior Management Team: Responsible for producing a robust business plan and ensuring all SEC-required disclosures are comprehensive and transparent.
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Investment Banker: Assigns a valuation to the company both pre- and post-capitalization and structures the securities to align with current market demand.
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Accountant: Develops pro forma financial projections and maintains accurate historical financial records.
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Attorney: Drafts all necessary legal disclaimers, prepares securities offering documents, and provides a legal opinion letter.
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Stockbroker: Facilitates the sale of securities to both individual and institutional investors.
It is important to note that the roles of the Investment Banker and Stockbroker are regulated under an SEC-registered, FINRA Member broker-dealer. These professionals cannot be simply hired; a formal legal and contractual engagement with a broker-dealer is required to utilize their services.
At Commonwealth Capital, we specialize in guiding Senior Management teams through the complexities of preparing for and securing broker-dealer engagements. Our strategic advisory extends beyond mere compliance; we craft and deliver regulatory compliant securities tailored to empower companies to directly solicit accredited investors, enabling access to the U.S. Private Securities Markets without the mandatory engagement of a broker-dealer.
For companies aiming to enter the U.S. Public Securities Markets via a public exchange listing, engaging a broker-dealer remains a legal requirement and standard practice. This decision rests with the issuer but is strongly supported by our expert guidance.
Whether your path leads through private placements or public offerings, Commonwealth Capital is equipped to provide the expertise and professional services essential for achieving optimal capitalization. Engage with us to harness the full potential of your capital-raising efforts, ensuring compliance, value, and success in your financial ventures.
Capital Sources
