Business Venture Assessment Process
Indigenous and private sector organisations with commercially viable business venture proposals are encouraged to approach Indigenous Business Australia (IBA).
IBA has the expertise and experience to thoroughly appraise proposals to determine their commercial viability and potential as joint venture investments.
If IBA considers it does not have the necessary experience or internal capability within a sector or investment area, it will engage industry experts to assist with due diligence and to act as independent and external directors on those assets until IBA considers it has developed the necessary internal capability.
Submitting a Business Venture Proposal starts after the completion and supply of a detailed Business Venture Proposal Form (PDF 311KB, new window) to IBA. A thorough assessment of a business venture proposal by our Acquisitions team takes time. IBA encourages submission of a comprehensive proposal that provides all the required and relevant information as this will assist in a faster appraisal process.
The primary criterion in assessing a 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 where Indigenous people might 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 submission of 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 consideration and approval.
The Aboriginal and Torres Strait Islander (ATSI) Act 2005 (external website, new window) specifically requires IBA to 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 your proposal please Contact Us.