At Walliance, we carry out a careful and thorough analysis of the Real Estate projects that are proposed to us, with the aim of reducing the potential risks associated with equity and debt crowdfunding investments and ensuring transparency of all information on investment offers.
For this reason, Walliance has developed an internal procedure for the analysis of the Issuing Company and the proposed Real Estate project, designed in compliance with the reference legislation and the regulatory provisions dictated by the supervisory authority of the sector.
The content of this internal procedure is dedicated to the professional activity of the various teams (directly or indirectly) involved in the Real Estate project analysis process. However, in this article we would like to outline its main contents, in order to make clients and potential investors aware of the project selection criteria and the analysis work that precedes and prepares the publication of a campaign on the Walliance portal.
The Walliance Real Estate project analysis procedure consists of 4 main steps:
preliminary investigation phase;
formal analysis of the operation;
substantial assessment of the operation;
publication of the selected project on the Platform.
1. Preliminary investigation phase
The first phase, defined as "preliminary investigation", is the responsibility of the Walliance Analysis team and consists in verifying the correct and complete transmission of the set of documents regarding the Issuing Company (and its related companies), necessary to continue the analysis of the project.
Only when the Analysis team verifies the regular and complete transmission of all the corporate documents requested from the Issuing Company, the preliminary investigation phase is deemed to be passed and it is possible to proceed to the subsequent phases.
2. Formal analysis of the operation
The second phase, defined as "ritual analysis", is also the responsibility of the Analysis Team. This phase is dedicated to:
verifying the truthfulness and regularity of the declarations made by the Issuing Company during the preliminary investigation;
verifying legal and integrity requirements of the persons who have a "qualified shareholding" in the Company;
obtaining of information of an asset, accounting, financial, structural, and rating nature concerning the Company and the other companies connected to it;
verifying the lawfulness, non-compliance with public order, and compatibility with legal requirements of the activity which is the subject of the business project and/or of the manner in which the Issuing Company intends to carry out such activity.
The Analysis team is responsible for monitoring the maintenance of the aforementioned requirements by the Issuing Company throughout the duration of the crowdfunding campaigns.
In addition to this periodic control, the Analysis team requires the company to send, on a quarterly basis, starting from the date of finalization of the offer, a report attesting to the progress of the works, the compliance with the agreed timelines, the compliance with the project covenants, the sales trend, etc.. The Analysis team itself, in order to verify the veracity of the information, requests evidence to document the truthfulness of the information.
These reports are published in the section dedicated to the operation and made accessible to investors.
3. Substantial assessment of the operation
The third phase, defined as "substantial assessment", is the responsibility of the Evaluation Committee and is aimed at a more thorough verification of the data and documents examined by the Analysis team.
This further verification phase investigates, in particular, the characteristics of the Offering Company and of the project, the skills, and capacities of the company's shareholders and directors, in terms of level of education or previous professional experience (with respect to the specific activity carried out and the complexity of the project), the risks of the transaction, the growth potential of the reference market and the analysis of the competitive scenario.
Following this assessment, the Evaluation Committee expresses its opinion on the transaction, on the basis of which the resolution relating to the transaction is issued.
The procedure described above is based on a system of scores attributed to various evaluation items that describe each project. In this way, each project analyzed is given a final mark, which determines whether or not it passes the analysis procedure.
4. Publication of the project
In the event that the project passes the evaluation stages described above, the candidate company and its Real Estate project are considered selected and the process of publication of the campaign on the Platform begins.
The selected company has to cooperate with Walliance in the preparation of the necessary documentation for the publication of the Offer, respectively, in the Equity or Debt section of the portal, in accordance with the Regulation and the applicable regulatory provisions.
The aim is to maintain a high level of investor protection, reduce the risks associated with raising capital through crowdfunding, and ensure fair and transparent treatment of all our customers.