- I have developed a wonderful product idea but I couldn’t find any factory to produce the prototype and/or samples for me because the order is too small. How would you help?
VCL and some members of the Advisor Group have extensive and excellent relationship with factories in China, especially the southern part of the country. We could help you find a suitable factory for this purpose, if we are convinced that the potential demand for the product is significant.
- How would VCL help us if we do not know how to manage our back office?
The solution would depend on the size of yourbusiness, the level of activities and the budget constraints, if any. It could be having a part-time person to handle the back office works, a person or firm to develop the back office procedure and provide your staff members with the necessary training or an outsourcing arrangement. We may help you identify the suitable firm or person after a thorough understanding of your business. We would also help you negotiate the relevant terms.
- We have been quite successful in running our business and want to expand the business significantly and we would need additional funding for this purpose.
We would advise you on the optimal funding arrangement, whether through supplier credit, bank loan or issuance of additional shares. The choice will have serious implications on your company’s profitability and liquidity position. We can also help you find the potential fund providers and negotiate the relevant terms.
- We have been approached with an acquisition proposal. We have not decided whether we should accept the offer.
We can help you evaluate the offer terms with a view on your company’s fair market value and the impacts on your company’s future prospects. We could also help you negotiate the terms particularly on areas on management control, future funding commitment etc.
- How would you charge for your services?
Our remuneration will be discussed and agreed with the client during the engagement negotiation process. It will be contained in the mandate letter which will be signed by both VCL and the client.
Our charges can be broadly divided into three types –
i) a fixed amount for the service;
ii) a fixed amount for each period (e.g. quarter or a year) during which the service is rendered or available;
iii) an amount calculated as a percentage of the amount involved. This usually applies for cases involving the raising of funds or other corporate finance activities; or
iv) a combination of the above three categories.
- Would there be any additional fees and expenses in addition to the agreed remuneration?
Any fees and expenses incurred by VCL for the purpose of rendering the services are reimbursable by the client. Provision can be included in the engagement letter to provide a maximum amount per item or per period.
- Can we terminate the engagement if we are not satisfied with your company’s services?
The right to terminate the engagement by either party can be discussed and agreed with during the engagement negotiation process. Either party can terminate the engagement as per the provisions agreed (e.g. notice period)