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Our proprietary Broker-Dealer Readiness Rating System™ evaluates a company's preparedness for broker-dealer engagement, essential for accessing U.S. public capital markets. By preparing companies for public securities markets, they are also positioned to secure the highest acquisition bids in private M&A transactions.
Investment Readiness Standards
Our BDR Rating System™ generates a Broker-Dealer Readiness Report™, where potential broker-dealers express “Indications of Interest” in investing in a company. This Report also provides companies with an actionable guide to improve their standing and readiness for raising capital through broker-dealers.
What is the market standard or precedent for the BDR Rating™?
The BDR Rating™ is derived from a multitude of questions that determine if a company is, or is not, broker-dealer ready. The questions are based on decades of experience from our management team and are directly tied to the needs of Wall Street investment banks and broker-dealers. Just as Fitch Ratings™ publishes forward-looking credit ratings on an entity's relative ability or obligation to meet financial commitments, our BDR Rating System™ generates a report based on a diagnostic analysis on a company's state as a quality deal for private or public securities markets relative to being broker-dealer ready, the highest possible level of investment readiness.
Is there a different system or tool in the market that can provide this rating?
No, there is not. Since 1998, Commonwealth Capital has delivered a hands-on, proprietary corporate finance advisory service for engineering companies to become broker-dealer-ready. The BDR Rating System™ results from this experience as a solution to help companies prepare for a broker-dealer engagement.
Can any company undergo and receive a BDR Rating™?
A company that accepts our Terms & Conditions and accurately completes our BDR Rating Survey™ through our portal system will automatically undergo analysis by our software. If the results meet our minimum criteria, our Ratings Team will complete the evaluation, and the company will receive a formal BDR Ratings Report™ via email or a secure web portal.
What is the cost for a company to submit for a BDR Rating™?
There is no cost to enter the system and apply.
How our BDR Rating System™ Works
Our rating system employs a sophisticated series of algorithms to analyze the readiness of a company for substantial capitalization through potential engagement with a Tier 1 broker-dealer. This process assesses whether a company meets the stringent criteria required for classification as a quality deal suitable for substantial capitalization.
The BDR Rating™ is derived from alpha values calculated using proprietary data science methodologies. This encompasses a comprehensive, continuous analysis of broker-dealer requirements, current market data, and the latest federal securities laws, combined with the insights gathered from our diagnostic survey completed by the company.
Broker-Dealer Readiness Reports™ deliver both a detailed outcome analysis and a set of actionable strategies. Companies can use these insights to independently enhance their BDR Rating™ or engage our firm for our Blue Chip program™ to improve their score. This system is integral to our strategy of aligning client capabilities with the rigorous standards of top-tier capital market engagements.
DISCLAIMER & DISCLOSURES
All Commonwealth Capital, LLC (“Commonwealth”) Broker-Dealer Readiness Rating™, aka BDR Rating™, Broker Dealer Readiness Report™, and related reports are subject to certain limitations and disclaimers. Please read these limitations and disclaimers within our Terms and Conditions.
Legal Disclaimer
This report includes critical legal disclosures essential to Commonwealth's operations. This disclaimer is crafted to withstand scrutiny at the highest legal levels and provide comprehensive protection against liability.
BDR Rating™ Definitions and Methodology
The detailed BDR Rating™ definitions for each rating scale and category, including those related to broker-dealer engagement readiness, are available at Commonwealth Broker-Dealer Readiness Rating System™. Additional information regarding permissible or ancillary services provided to rated entities or related third parties can be found at Blue Chip Program™.
Information Reliability and Verification
Commonwealth relies on factual information received from issuers, underwriters, and other credible sources. A reasonable investigation of this information, in accordance with our rating methodology, is conducted, and reasonable verification from independent sources is obtained to the extent available. This investigation and verification scope varies based on jurisdictional practices, public information availability, and access to company-related information. Users of Commonwealth BDR Ratings™ and BDR Rating Reports™ should understand that even enhanced investigations and third-party verifications cannot guarantee the complete accuracy and comprehensiveness of the information relied upon. Ultimately, the accuracy of information remains the responsibility of the company.
Expert Opinions and Forward-Looking Statements
Commonwealth's ratings and reports depend on expert opinions, including those from independent auditors and legal professionals. Ratings and forecasts inherently involve forward-looking statements based on assumptions about future events, which cannot be verified as facts. Consequently, despite current fact verification, future events or conditions may impact ratings and forecasts.
Disclaimer of Warranties and Liability
The information provided in this report is "as is" without any warranty of any kind. Commonwealth does not warrant that the report or its contents will meet the requirements of any recipient. A BDR Rating™ is an opinion-based diagnostic analysis reflecting a company's broker-dealer readiness. This opinion is derived from established criteria and continually evaluated and updated methodologies. Therefore, ratings and reports are collective work products, not attributable to individuals or groups.
Limitations of Ratings and Reports
Ratings do not address loss risks other than investment risk unless explicitly stated. Commonwealth does not engage in the offer or sale of securities, and ratings are not recommendations to buy, sell, or hold securities. Ratings do not comment on security price adequacy, investor suitability, or tax implications. The assignment, publication, or dissemination of a rating by Commonwealth does not constitute consent to use its name as an expert in any registration statement.
Advisory and Regulatory Compliance
Commonwealth Capital, LLC and its affiliates do not provide tax, legal, accounting, or investment advice. Commonwealth Capital, LLC is not a licensed Broker-Dealer or a FINRA-licensed Registered Investment Advisor. This report is for informational purposes only and should not be relied upon for tax, legal, accounting, or investment advice. Consult your own advisors before engaging in any transaction. Commonwealth Capital, LLC is not a credit rating agency and is not registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO).