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to our first meeting with management, we will typically request a
business plan or executive summary to set the groundwork for an efficient
and productive initial encounter. Following this meeting and the introductory
presentation, Huntington will consider a variety of factors in assessing
the growth potential of a potential investee company. The evaluation
of technology and markets, together with a careful review of the quality
of the match between the investee company and the investment priorities
of Huntington, are but a few of the steps in this process. Because
our investment philosophy is based on a close working relationship
with management, considerable attention will also be given to the
management team of any prospective portfolio company. Our due diligence
process is designed to create evaluation platform from which to assess
the skills, judgment, integrity and leadership of all key management. |
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portfolio company should address a genuine market need. In certain
cases, it might also identify a market need that did not previously
exist. Existing markets will be specific, large, and growing; or,
if not, they should be changing rapidly. These markets should have
significant barriers to entry and have a forecast of sustainable high
profitability. Competent technical analysis of markets should strongly
support a probable leadership position for the investee company or
at least an unassailable niche. If a new market is being defined and
created, then the investee company should indicate their commitment,
resources, and plan to achieve preeminence in the new market. |
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competitive advantage of the investee company should be novel and
protectable. Whether the companyıs proprietary position is defensible
from a legal point of view (patents, copyrights, etc.), or from a
business point of view (trade secrets, supply contracts, etc.) it
is essential for a potential investee company to demonstrate the ability
to hold a market advantage over a period of time. To the extent that
such an advantage can be projected, the management team should also
be prepared to demonstrate both how the advantage will be achieved
and in what ways in can be leveraged to establish a dominant market
position. |
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evaluation criteria built into investment process ensure that each
new investment conforms closely to the strategy and approach of Huntington
Ventures and that potential returns are commensurate with the risk
assumed. Evaluation criteria are grounded in due diligence and the
investment team thoroughly analyzes each opportunity before making
a financial commitment. Only upon shared consensus by the investment
team that the potential investee company has both the adequate market
potential and the management suited to develop the venture does the
investment move forward to the next phase of the financial cycle.
The investment team's analysis includes a review of the company's
management, technology, strategy, operating plan, markets, competitors,
cost structure, regulatory profile, patents, financing requirements,
and deal structure. |
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