Corporate Engineering Conservatory

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Corporate Engineering is a practice utilizing standard principles to govern a company’s development of all the corporate governance policies, procedures, and protocols necessary to attract investors.

Corporate engineering involves creating the correct legal, operating, and financial structures to mitigate risk and maximize returns for investors while enabling the founders to maintain the vast majority of equity ownership, voting control, and personal wealth created.

Proper corporate engineering ultimately prepares and qualifies a company and its securities for the highest possible valuation as a listing on a publicly traded U.S. securities exchange. More importantly, proper corporate engineering inherently prepares a company for the highest possible private valuation for a private sale as an alternative.  

Corporate engineering focuses primarily on mitigating operational, financial, and litigation/regulatory risk by design for start-up and early-stage companies to attract investors.

Image of the famous bull statue on Wall St

Proper Corporate Engineering is required to take any company from “Idea to IPO.”

For young companies that have yet to be correctly engineered, we provide automated standards of proper corporate engineering in our Corporate Engineering Conservatory™. Through a progressive series of online exercises, procedures, and executions in our Corporate Engineering Conservatory™, we enable entrepreneurs to build companies that other investors and we want to invest in.

Here is a look at the core components of our Corporate Engineering Conservatory™ operating within the EPEC Platform™ to help you develop your company into the “Quality Deal Flow” that investors seek.

EDUCATION. Within the Corporate Engineering Conservatory™, all Corporate Engineering starts with learning how to function within the U.S effectively. Capital Markets from a relative position of strength with the Financial Architect System Course™.

PRODUCTION. After the required knowledge has been obtained through the Financial Architect System Course™, one moves into the Financial Architect System Production™ component. There, one uses our tools to create 5-year pro forma financial projections that are GAAP (Generally Accepted Accounting Principles) compliant. These 5-year pro forma financial projections set forth all disclosures necessary for an effective securities offering, such as:

  • Revenue Projections

  • Cost of Goods Sold or Services Delivered

  • Estimated Annual Gross Profit

  • General Administrative Expenses (including Executive Compensation)

  • Estimated EBITDA

  • Capital Budgets with related depreciation schedules

  • Estimated Annual Net Income

  • Estimated Company Valuation in a private as well as a public market

  • Securities Pricing and Valuation, as well as a public market

  • Estimated Internal Rates of Returns in three separate scenarios for various types of securities, such as:

1) IRRs for Note “Yield to Maturity” for Convertible Notes, or “Yield to Call” for Convertible Preferred Equity

2) IRRs for Convertible Note or Convertible Preferred Equity based on Conversion into common equity in a private market

3) IRRs for Convertible Note or Convertible Preferred Equity based on Conversion into common equity in a public market      

  • Pro Forma Consolidated Statement of Operations

  • Pro Forma Consolidated Statement of Cash Flows

  • Pro Forma Balance Sheets

  • Internal Rates of Return Statement

  • Pro Forma Sources and Uses Statement

  • Use of Proceeds Statements based on various amounts of capital raised

  • ESOP and Executive Cash Compensation budgets and standardized Agreements to attract quality management or human capital

  • Notes to Pro Forma Financial Projections

 

Once the Pro Forma Financial Projections are complete, one moves on to the Production of a securities-offering document that qualifies for a myriad of exemptions from securities registration, a costly process, saving one from 95 to 99% of the traditional cost involved.

 

In addition, proper corporate engineering also prepares start-up and early-stage companies to expand operations using equity or debt securities as currency to purchase strategic assets or acquire whole companies. This tactic builds strong income statements and balance sheets to secure traditional debt capital without the need for personal guarantees by the company’s founders.

EXECUTION. Once your company’s securities-offering document is completed, we invite you to submit it for inclusion into our Venture Capital Fund, Commonwealth Capital Income Fund-I, where the offering is showcased for investment consideration by us and our Co-investors.

We would like to know more about your company and how it might fit within our investment criteria. We have automated the process with our Capital Access Portal below to conduct our initial due diligence review on your company to further your company’s qualification for funding. Please click on ACCESS CAPITAL below.

For those who simply want to learn more, please click on LEARN MORE below