Capital Formation Services
Built for the Real World
“Legally and effectively raising substantial amounts of equity or debt capital for your company will be the single most difficult thing you’ll ever do in business.”
Commonwealth Capital provides a do-it-yourself process through the Financial Architect AI System™ or through a full-spectrum capital formation service known as the Corporate Finance Advisory Services for a fraction of the normal investment banking advisory service fees.
Description of Production Services
Production of GAAP Compliant Pro Forma Financial Projections
Commonwealth will produce 5-year pro forma financial projections based on the Portfolio Company’s financial assumptions to be included within the Regulation D Rules 506(b) and/or 506(c) Securities Offering Document, also known as the Private Placement Memorandum (“PPM”). These projections include Pro Forma Income Statements, Company and Stock Valuation, Securities Pricing, Pro Forma Cash Flow Statements, Pro Forma Consolidated Statement of Operations, Pro Forma Balance Sheets, IRR Calculations under three (3) separate scenarios, as well as a Sources and Use Statement produced in compliance with Generally Accepted Accounting Principles (GAAP). The production of said pro forma financial statements are for Portfolio Company customization and further completion by Portfolio Company with the assistance of Commonwealth.
Company Valuation, Securities Creation & Pricing
Commonwealth will provide advice on the Portfolio Company’s valuation, securities pricing, and formulation of the capitalization mix and deal structure for the Portfolio Company to be included as proper disclosure within the Regulation D Rules 506(b) and/or 506(c) Securities Offering Document. The Production of said deal structuring and securities creation is for Portfolio Company customization and further completion by the Portfolio Company with the assistance of Commonwealth.
ESOP Compensation Plan & Budgeting
Upon request Commonwealth will collect information and data from the Portfolio Company, deemed necessary for Portfolio Company’s production of an ESOP Compensation Plan, and provide budgeting based on vesting schedules as determined by Portfolio Company. Commonwealth will provide advice on and produce vesting tables to be used internally and included in the Portfolio Company’s securities offering documents in order to attract the necessary management talent to the Portfolio Company to be included as proper disclosure within the Regulation D Rules 506(b) and/or 506(c)/Title II Securities Offering Document. Commonwealth does not provide ESOP Compensation documents or plan administration. ESOP Plan services are to be managed by 3rd party administrators of the Portfolio Company’s choice, if any.
Production of a Securities Offering Document compliant with Regulation D Rules 506(b) or 506(c)
Commonwealth will collect information from the Portfolio Company of data deemed necessary for Portfolio Company’s production of a non-registered securities offering document (PPM) to qualify for claiming an exemption from federal and state registration under Regulated Crowdfunding, Regulation D Rules 506(b) or 506(c) as appropriate. Any cost associated with the selection and creation of the securities offering documents and other materials under Regulation D Rules 506(b) or 506(c) outside the Secured Securities Offering Portal rests exclusively with the Portfolio Company.
Production of Securities Sales Presentation™
Commonwealth will produce a securities sales presentation for Portfolio Company. The delivery of the presentation shall be located on a Private Securities Offering Portal™. The Production of said securities sales presentation is for Portfolio Company customization and further completion with the assistance of Commonwealth. Portfolio Company is responsible for the securities sales presentation’s compliance with applicable laws, and Commonwealth agrees to cooperate with all reasonable requests of Portfolio Company to ensure that all content of the securities sales presentation is in legal compliance at the delivery of the securities sales presentation to the Portfolio Company.
Production of the Transfer Agent & Registrar Portal™
During the pre-broker dealer phase for selling directly with no broker-dealer involvement, Commonwealth will create a Transfer Agent & Registrar Portal™ to be linked to Portfolio Company’s website (if existing, or will create a basic website for Portfolio Company if necessary) to enable the Company to perform the necessary, SEC required, administrative tasks associated with issuing, transferring and registration of securities to investors. The Portfolio Company, as the Issuer, shall always have a legal responsibility to track and maintain evidence of the distribution of all of its securities offering documentation. The Private Securities Offering Portal™ is for Portfolio Company customization and further completion with the assistance of Commonwealth.
Production of Finance Employment Portal™ for Hiring a CFO or Vice President of Corp. Finance
Commonwealth shall assist Portfolio Company in the employment of a qualified candidate for the position of CFO or Vice President of Corporate Finance, who is to assist Portfolio Company in the operations of an internal finance department for the specific purpose of capitalizing the Portfolio Company and maintaining continued investor relations and securities compliance. This includes the establishment of a Finance Employment Portal™ to conduct the screening process of candidates. This effort includes but is not necessarily limited to advice on employment advertisement placement, job position description, design, and suggestions provided to Portfolio Company’s legal counsel for provisions in an employment agreement. The Finance Employment Portal™ to be produced to post job descriptions enabling the receipt of resumes from candidates through a secured tracking system, ensuring viable candidates. Commonwealth shall assign a Managing Director to assist in the due diligence and screening of said candidates; however, the ultimate responsibility for and cost associated with the advertising, promoting, interviewing, and hiring of said candidates rests exclusively with the Portfolio Company. The Production of said Portal is for Portfolio Company customization and further completion with the assistance of Commonwealth.
Coaching on the Solicitation and Sales of Securities
We will provide you and your Management Team with essential solicitation, sales, and compliance training concerning selling securities, with or without the engagement of a broker-dealer through video tutorials, so everything we have is always available to you 24/7/365.
The typical fee for our Corporate Finance Advisory Services runs $30,000, with 1/3rd down, 1/3rd upon the delivery of the 1st draft of the Securities Offering Document and 1/3rd at the delivery of the electronic portals for a full spectrum of functionality.
Do it yourself with the
Financial Architect System™