Assessment Process
All IBA investments must be commercially sound and all business proposals are subject to a rigorous assessment process.
The Investments Program determines the commercial viability of IBA Investments through the Acquisitions team. The Acquisitions team identifies, develops and assesses potential investment opportunities.
IBA has the necessary expertise to assess potential business opportunities and negotiate possible joint ventures. In order to properly assess a business proposal, IBA requires detailed information.
Proposals should include/highlight:
- General overview of the project
- Business plan
- Market analysis
- Historical financials
- Cash flow projections
- Independent business valuation
- Assets and equity to support venture
- Liabilities, including existing or proposed loans
- Viability of joint venture partners
- Management experience
- Identity of Indigenous partner(s)
- Value of investment sought from IBA
- Indigenous benefits
Proposals can be discussed by contacting IBA Investments on 1300 662 746 or investments@iba.gov.au
Further details of each requirement can be found in Submitting a Proposal.
A thorough assessment of proposals by the Acquisitions team takes time to complete, so a comprehensive proposal providing all the required and relevant information will assist in the appraisal process.
The primary criterion in assessing a new proposal is clear evidence of long term commercial viability. For a business to be commercially viable, it must produce an income which is greater than its expenses, and if a surplus is produced a dividend may be paid to shareholders. To determine the project's commercial viability, IBA will carry out an evaluation of the business plan, historical financials, and cash flow projections. The viability of any joint venture partner(s) and their management experience will also be evaluated, including an assessment of assets.
As well as assessing commercial viability, IBA will also examine potential Indigenous employment and training outcomes, as well as opportunities for Indigenous people to participate in the management and decision making processes for the business.
If, after the initial assessment, the proposal is deemed to have merit, IBA may contract an expert consultant to perform a full analysis and appraisal of the venture (due diligence) to determine viability. A full due diligence may require additional information (e.g. legal and related matters, summary of tax position, and customer and market information).
Should the submission meet all criteria, the proposal will be presented to IBA's Board of Directors for their decision.
The Aboriginal and Torres Strait Islander Act 2005 specifically requires that IBA have regard to the desirability of making specialist expertise available to Aboriginal persons and Torres Strait Islanders engaged in commercial activities.
If you wish to discuss a business proposal or require further information to assist with developing a proposal please contact IBA Investments on 1300 662 746 or investments@iba.gov.au
