We are starting a series called “Ask Oxano Series” where we address your most frequently asked questions.
Q: What is Oxano Capital’s investment process?
At Oxano Capital, we follow a structured and strategic approach to investment. Our process is designed to ensure that we invest in companies with strong potential, a clear growth strategy, and the ability to scale sustainably. Here’s a breakdown of the key stages in our investment process:
1. Initiation
We begin by sparking interest in Oxano Capital’s investment opportunities. If a company is looking for funding, they can inquire about our process. An Investment Associate or Analyst from our team will reach out to assess the potential fit.
2. Conversation
This stage involves an initial conversation with the investee. We present Oxano Capital’s investment philosophy and explain our objectives, allowing the company to share insights into its business model and vision.
3. Initial Assessment
At this point, we conduct a high-level evaluation of the business's viability. We assess the company’s initial application against Oxano Capital’s criteria and prepare a document analyzing the business fundamentals, financial health, and scalability. If the company meets our initial benchmarks, we proceed.
4. Investment Proposal & Financial Modeling
A comprehensive investment proposal and financial model are developed to determine the company’s potential for growth and return on investment. The investee provides detailed information about its operations, market, and financials. This step is crucial in shaping the investment terms.
5. Letter of Intent (LOI)
If the proposal meets Oxano Capital’s standards, a non-binding Letter of Intent is issued. This signals our interest in investing, and the potential investee reviews and negotiates the terms before proceeding further.
6. Due Diligence
A deep dive into the company’s financial and operational data takes place. The investee is given access to a data room to provide all necessary documents. A site visit may also be conducted to verify information firsthand.
7. Deal Closing
Once due diligence is completed and all terms are agreed upon, the final contract is signed. Funds are released, and the deal is executed, marking the beginning of our investment partnership.
Our process ensures that we invest in businesses that are not only financially viable but also aligned with our mission of fostering economic independence and long-term growth. If you think your company is ready for investment, reach out to us today!