The ongoing acquisition strategy of Bergamo Acquisition, similar to the acquisition strategy of Berkshire Hathaway, targets a diversified portfolio of companies with sound fundamentals and growth potential. In Bergamo's case, the funding of these acquisitions is based upon a well-established process of carefully identifying and vetting major investment sources, up to and including the recent confirmation and transfer of investment funds through the services of HSBC, the world's third-largest publicly held bank.
To read last week's press release announcing Bergamo's $1.5 billion investment agreement with National Wealth, visit bergamocorp.com/2013/01/bergamo-acquisit.... Our team has worked directly with management to further explain the relationship Bergamo has with National Wealth.
Identifying and establishing formal relations with appropriate investment groups is a detailed and careful process, involving a set of contractual and independently verified steps that have long been established and recognized by the legal and financial community to confirm funds and process their transfer between entities. Although it is a time consuming process, Bergamo considers comprehensive vetting and contractual endorsement by all those involved as being critical to proper transactions of size, and in the best interests of all parties. It's one of the reasons the investments are attractive to investment banks, private equity funds, and other institutions.
Using extensive due diligence, Bergamo is able to identify the most qualified investment groups, with which the company draws up a highly detailed contract carefully spelling out all of the duties and responsibilities of the parties. Included is the representation by the investor group of the funds they plan to invest, meaning cash funds in a respected bank that are free of liens, not borrowed, legitimately earned and ready to be invested. Once the agreement is signed, the investment group further draws up a statement with additional details regarding the funds.
Final confirmation, however, comes in the form of actual bank-to-bank communications with the bank formally verifying all of the above. The preferred form of bank-to-bank verification is a SWIFT message. SWIFT stands for the Society For World Interbank Financial Telecommunication, a non-profit financial organization headquartered in Belgium which, among other services, provides a formal agreed upon way for banks around the world to communicate the accepted verification of funds for large transactions. Such a formal confirmation message can only be sent if the account holder agrees that the funds will be held as security for the transaction, and represents essentially a cash-backed security.
Following final verification, the funds can be transferred, in this case to the designated bank account of Bergamo's European company. The funds are then under Bergamo's control, but with an agreement in place to use them only for investments agreed upon by all parties. The profits to be generated from these carefully chosen investments will be divided equally between Bergamo and the investor group. It's important to note that the vast capital secured under the recently announced investment agreement enables access to ultra-high-return investment opportunities available only to those with extraordinary funds.
Bergamo's portion of proceeds from the investment program with National Wealth is free to be used for whatever the company choses, and the company has already made clear its intent to invest in high-quality acquisitions. Bergamo's financial connections give them both a source of select investment opportunities as well as an ongoing steam of secure funding for their strategy of targeting superior acquisitions in both the U.S. and Europe.
For additional information, visit the Bergamo website at BergamoCorp.com
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