Company Reporting Requirements

Summary

Consistent, efficient monitoring of our investments is an essential element of New Mexico Community Capital's (NMCC) effort to create portfolio company value. NMCC must understand its portfolio companies' execution in order to assist them with resources and expertise. Frequent, crisp communication is preferable to extensive documentation prepared less often. The objective is to maximize the efficiency of NMCC's review procedures and reduce the labor involved by each investee.

Specifying reporting schedules will be part of the original deal documentation. This will enable portfolio companies to develop a regular reporting rhythm. Consistently late reporting will not be tolerated and deal-specific documents will stipulate that a failure to report on a timely basis could trigger a default with serious penalties.

Monthly Report

This is a short, narrative document that shouldn't be burdensome for investees. On the contrary, the template developed by NMCC will help portfolio companies understand their execution as well as giving NMCC a summary of their progress against plan. It will contain the following elements:

  • Financial Overview
  • Sales Summary
  • Operational Highlights

Quarterly Reports

Portfolio companies are expected to have regular board meetings on a quarterly basis. These are very important events and provide the best opportunity for us to formally interact with investees. NMCC expects to receive extensive reports about the performance of each company during the prior 90-day period at least a week before the meeting. The major components of these reports are listed below; some transactions may involve deal-specific reports. For example, if NMCC's investment were tied to specific milestones, then progress toward that goal would likely be a formal reporting requirement for that transaction.

Financial

  • Narrative description of performance against plan
  • Balance sheet
  • Profit and loss statement
  • Cash flow statement
  • Receivables report
  • Capital expenditures report
  • Financial ratios report
  • Updates to projections, if any

Sales & Marketing

  • Narrative summary by product & territory
  • Narrative description of performance against plan
  • Highlight of marketing efforts

Administration & Operations

  • Hiring plan update
  • Proposed management salary changes, if any
  • Narrative description of operation issues related to company systems (e.g. Customer support, accounting)
  • Supply chain management and production plan update (when relevant)

Miscellaneous

  • Narrative description of new product development efforts (if applicable)
  • Explanation of any technological
  • Additional resources and expertise requested of NMCC