spec, excellent thinking:
I know quite alot about this type of business in general as I have been involved in transactions that are similar in nature.
This is why I knew we had a huge opportunity with this stock here being "ground floor". My knowledge is more than cursory in this area from real time experience, so I know how they do it.
Here are your questions:
Do they go to Silar capital and say please gives us 100 million to get this contract done. Then GSEIF gives the money over to the healthcare company and then they ask Silar for their 3 million upfront.
The actual funding is provided under contract and all the parties receive their fair share at closing. The closing transaction is similar to a property closing, all the parties are paid at closing.
What exactly is Silar paying for if it is them giving GSIEF the money for the deal to proceed.
Silar is the funder of the transaction, and recieves a commission so to speak that is passed back to their investors in the funing venture.
Does GSIEF do all the negotiations regarding the discount factor associated with deal?
It is my understanding that GSIEF/Silar/Client agrees on a figure that applies to each particular transaction. The differences in percentages of discount, would be negotiated relative to the percieved risk of each transaction. (there are differences due to the fact that every medical facility participating would have a different demographic model as it relates to their patients, some are more medicare/medicaid as opposed to patients with stonger insurance plans)
Are they the ones with the expertise to create the computer models to work out the discount?
Yes, GSIEF has developed this model to apply in its business plan over the last few years. The model must contain computer theory based on input data, but, there is a large human critical perspective that must be included There are some huge people who have been involved in the planning: S&P, Duff& Phelps, and the Stephens Co. investment banking giant that took Walmart and Tyson Foods public.
The GSIEF model follows these well known investment bank and rating agencies guidelines, this is why I beleive that eventually GSIEF will go to the bond market to raise money. As you can clearly see, they did not get the cart before the horse here, everything was planned and researched prior to implementing the actual business plan
What actually does GSEIF do to earn their money? Why can't Silar or whoever it is bypass them and go direct to the healthcare provider and negotiate the deal?
GSIEF earns their money by obtaining the client, performing the due diligence on the client receivables, and putting together a proposal to the client (with Silars guidance to a degree) that determines how much GSIEF/Silar can advance to the subject client.
Does Silar or whoever it is providing the capital have a share in GSIEF succeeding?
Silar is the principal funding source, have no idea if Silar associates are someway involved at the GSIEF shareholder level. That being said, it is a fact that Dr. Phillips is now a board member and shareholder, that fact is fairly revealing in and of itself.
AI
