As a family office, we focus on the private markets at a level which is not typically covered by generic Private Equity funds. We try to be more adaptable to investment opportunities. However, they must meet our initial guidelines.
We review all opportunities introduced to make sure they match our firm’s values and strategy. Although, our preference is to source opportunities generated by our existing network of co-investors,
If an opportunity or application passes our initial screening stages, our dedicated team will generate an assessment report. This is to ensure investee and investor goals are aligned. If so, it will soon be manifested in a letter of intent (LOI). If we are not empowered by management to properly understand their business, it is impossible to reach a fair valuation. Ultimately, at this stage, we try to provide an estimated valuation with both parties can agree.
Once a provisional agreement is reached on valuation in our assessment report, and on strategy, a nonbinding LOI will be presented and approved by the Zen board.
Next, full internal and external due diligence is conducted as swiftly as possible. Before we invest in a business, we require management to assist us and disclose all that is positive or negative at the time in order to know their business well in a short period of time. A vital element of this process is the building of trust and openness between management and Zen during the entire negotiating process.
We try to act as swiftly as any prudent investor can act. With legal assistance, the next stage includes final binding terms. This includes agreed valuation, structuring of the transaction itself, and all fine legal details. We are not a traditional Private Equity fund, therefore, there are no set time limits for an exit. It is unusual for us to consider remaining an investor permanently.
Zen Capital and Mergers is a “hands on” investor in most opportunities to which it will commit, primarily in Western Canada. Our team expects to meet with investee management team regularly, to help keep strategy and growth aligned, generate useful investor reports, and work to structure agreed exits in part or whole.