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MEETINGFUNDINGAPPROVALCRITERIA.COM of FILMINVESTMENTBANKING.COM for the last 100 years according to Wall Street & NIRI.org

Date:

Wall Street has been funding Hollywood for the last 100 years. Just ask multiple Oscar/Golden Globe winner Cecil B. Demille; film producer & Bank of America VP, Culver City, CA branch, 1924.

Film producers always erroneously assume professional investors or investment bankers want to see their script first thing. For anything to even be considered monetizable IP; they must be registered or patented with the US Government. Then an IP investment banker will appraise it and calculate a valuation. Which isn’t done for free. Analysis, Advisory, Appraisals & Advertising (P&A or IR call centers are not brokers) says https://www.NIRI.org.

(1) NEVADA/FED film funding options & approval criteria:

(a) $10M annual budget monetizable film tax credits from $500K per film. 25% + 5% for having 51% local cast & crew + 5% for rural shoots that comprise 50% of shoot.

(b) $20M film production bank loan 35% collateralization to $5M. Largest single component of film financing. POF required to $5M to begin an application.

(c) 85% US EXPORT Overseas Buyers loan guarantees w/NO cap to 10 years. Great incentives for overseas film distributors. POF of 15% of face value required to begin an application.

(d) Matching funds + 39% Tax Deductions. Angel investors must have minimum POF’s of 20%. Other key requirements; investment include hard assets (R/E) and create “sustainable” jobs. Gig jobs do not count.

(e) To 100% Income / Corporate / Export Sales / Capital Gains Tax exemptions

UNCLE SAM should always comprise 33% of any firm’s capitalization/cost containment goals to achieve 20% annual recap rate to roll over into next year’s budget, so when any professional investors ask if you have any “skin in the game” you can say YES.

(2) 100% Arbitrage film finance approval criteria:

100% Arbritage film finance includes some securities equity funding and may not require buying a completion bond normally required to coincide with equity.

Such funders mitigate risk by having secured assets that outweigh the total budget. Qualifying assets include ‘bankable’ name talent/directors & pre-sales/MG’s & monetizable financial instruments (BG’s/MTN’s/SBLC’s) based on valuations of substantial potential profit margin.

(3) 50% Supergap film finance approval criteria:

Regular gap funding averages 15% of film budget. Super gap funding averages 50% of film budget.

1st rule to remember is “Safety Margin” requires sales estimates of Unsold territoriesbe 150% of the combined gap loan amount; plus 3 primary US/Intl. territories of guaranteed pre-sales contracts.

Supergap funding is another form of subordinated or mezzanine in an average range of $10 to $20M and may include an additional 100% P&A funding for a combined total of up to $30M.

Supergap funding will also include; asset-based lending (ABL) of monetizable assets and/or gov tax incentives/loan guarantees/matching funds/grants for an estimated total of 18% of film budget.  Another benefit of Supergap funders is they may also facilitate theatrical release up to 1,500 screens but mandate all brand integration.

(4) Pre-sales estimates /future revenue streams (Notes) film finance approval criteria:

LA has at least one $100M future revenues note buyer firm headed up by former staff of William Morris Agency.

1 future revenue streams of pre-sale estimates funder & production partner wor% with those have documented success in prior sales volume for film/TV/musical productions.

At least 1 bank claims to provide gap finance against Unsold global production rights from primary territories (may be available on a project basis)

Any professional investor will want to (start) with receiving 5 documents, including; project summary, presales estimates, sales agent info, full budget, cast info. In ALL cases the full amount of the loan must be collateralized byfuture revenues.

Collateral can include; Credit-worthy Licensing or Distribution Agreement for domestic and/or foreign rights by film studio film ultimates & sales agents estimates. A full loan package requires 11 documents. A few include; description of collateral/equity investor contracts/contact officer for financial institution SBLC’s/talent agreements/producer & director resume/script ownership chain of title/script/budget breakdown/weekly cash disbursement schedule.

(5) Filminvestmentbanking.com firm’s film finance approval criteria:

At least 1 Filminvestmentbanking.com firm offers “Corporate lenders equity partnership”. Most such firms offer a combination of equity & revolving lines of credits. 100% equity finance with no securities to sell is both a myth & considered securities fraud. The normal ratio of capital is 65% ABL/debt capital and 35% gov soft money/equity securities capital. The 2 reasons for this are to leverage capital and mitigate risk.

Investment banks can be specialized. Some can provide M&A seller support. This requires 14 CRM steps including non-broker Structuring & Valuations. https://www.Enhancinginvestmentvaluations.com is an important yet overlooked CRM task that increases company valuation 6X. All 14 steps require a campaign operations expenses retainer plus a success fee. Another IB service is the 2 reporting requirements for employee stock options.

Publicly-traded equity securities can be monetized in 2 weeks in the form of a tax-deductible stock loan. Only DPO’s do not require quarterly SEC audit fees to make sure you are compliant with making sure everyone is an accredited investor. With DPO’s everyone can be an investor. Including cast & crew/theater owners/audience/supply chain/P&A advertisers. Investment bankers also arrange pre-IPO EBITDA funding if you have gross revenue POF’s of at least $2M a year.

The following 3 people express facts about investment banks in the 21st Century. One is a Silicon Valley CEO whom has actually raised $1B. The 2nd is an investment banker from Atlanta. The 3rd is a film producer from New York City. This post is 8 years old;

https://SinCityFinancier.wordpress.com/2013/05/03/quotes-from-linkedin-com-the-fees-construed-as-up-front-should-not-be-taken-out-of-context-1st-few-if-any-investment-bankers-or-banks-will-grant-funds-without-fees-in/

FYI: Investment comes from the word VESTED as in vested interest the borrower has. Also called “skin in the game”. The sweat spot is 20% LTV.

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VETBIZ IR media firm GLOBALCROSSROADSCAPITAL.COM is HQ’ed in corporate-tax free Las Vegas, Nevada.

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Source: https://sincityfinancier.wordpress.com/2021/02/14/meetingfundingapprovalcriteria-com-of-filminvestmentbanking-com-for-the-last-100-years-according-to-wall-street-niri-org/

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