Syndicate
This article aims to familiarize you with the concept of syndicates and outline the fundamental rules and conditions for their registration and execution. To begin with, we suggest that you familiarize yourself with the basic concepts and glossary.
On the BBB platform, we offer two types of syndicates: one for members of the BBB peer-to-peer network and one for corporate vendors. Currently, we're unable to accommodate syndicate registration for private vendors not part of the BBB network.
Syndicates for Corporate Vendors
This feature is exclusively for products and services listed on the BBB platform. For instance, if you're a developer looking to sell a specific number of apartments within a set timeframe, utilizing the syndicate feature can help you reach your target.
How It Works:
You propose attractive terms (syndicate offer) to potential participants, set the minimum number of participants required (quorum), outline participation conditions, penalties for failure to fulfill obligations, etc. For example, if a quorum of 10 potential buyers forms between June 1 and July 31, 2024, each participant will receive a 10% discount on the apartment cost if the deal closes by September 1, 2024.
Relevance of the Proposal:
Discounts and other benefits must be genuine, and any unfair manipulations with prices or conditions will be monitored by our analysts. Such practices may result in refusal to publish the syndicate. Additionally, it's important to note that among BBB network members, integrity is paramount.
Syndicate Terms:
The discount size, minimum and maximum number of participants, and other special conditions (syndicate offer) are determined by the syndicate organizer. For BBB network members, syndicate participation will be legally formalized via a letter of intent (LOI), with the organizer outlining key agreement points and sanctions for violations in the registration form.
Obligations of the Parties:
By joining a syndicate, BBB members commit to fulfilling the syndicated transaction terms (syndicate execution) once the required quorum is met. They also bear responsibility for refusal or failure to meet obligations (sanctions). The syndicate organizer, in turn, commits to fulfilling obligations to BBB network members (syndicate redemption) and providing the benefits outlined in the syndicate offer upon reaching the minimum quorum within the specified timeframe.
To register a syndicate, the organizer must first place an advertisement for the main product or service in the relevant section of the BBB platform, such as the 'Real Estate Listing' section for apartments. The minimum syndicate execution period is set at 30 calendar days, and the advertising duration on the platform must be twice as long as the syndicate period. For example, if the organizer sets a syndicate activation period of 30 days, the advertising subscription must be active for 60 days, and so forth.
Notification of syndicate creation is conducted as follows:
Active BBB network members will receive automatic notifications when the corresponding information depository opens recruitment for a new syndicate. Potential network members (drawn from our global database of 2000+ billionaires, 1500+ centi-millionaires, and 6500 multi-millionaires) will be directed to view a list of active syndicates as part of our monthly newsletter, generating traffic to the active syndicates section.
Organizers can opt to place information about the syndicate in the Featured Ads section of the informational email by using an additional service, priced at $500. This option will be presented to syndicate organizers during registration.
Moreover, formal BBB network members will have the chance to invite friends to join the syndicate. However, invitees (if their profiles raise doubts) must undergo the onboarding procedure to become formal members of the BBB network. Only after their candidacy is approved will they be eligible to apply to join the syndicate. We reserve the right to reject membership applications that do not comply with our platform requirements, resulting in denial of entry to the syndicate.
Anticipating Higher Participation Levels:
The organizer should anticipate potential interest exceeding the minimum quorum. To capitalize on this opportunity or prevent complications, it's crucial to establish both a minimum and maximum number of participants for the syndicate. The approach can be stringent, automatically halting new participant entries upon reaching the minimum quorum. Alternatively, the organizer can set a maximum participant count, closing entries once this limit is reached. Corporate vendors organizing syndicates must consider inventory management to ensure syndicate obligations can be fulfilled without issues. Moreover, the minimum participant count (quorum) should align with the proposal's financial model, considering economic, legal factors, and market fluctuations.
Monitoring applications:
Applications to join the syndicate are submitted via the registration form and are managed chronologically. BBB network members applying after the syndicate reaches the minimum or maximum participant count are not eligible for syndicated transaction benefits, even if the application form remains active. Chronological order governs acceptance. For instance, if the participant limit is 10, the 11th registrant will be excluded.
Syndicate implementation period expiration:
If the required quorum is not met by the initially set deadline, the syndicate is considered complete. However, the organizer can extend the implementation period once for a similar duration. Extensions beyond the second time require improved conditions. Registration of a new syndicate under the same terms is rejected, and participants are notified automatically of termination, extension, or term changes.
Information Disclosure:
Participation in the syndicate can be public, meaning the participant's name will be disclosed to the syndicate organizer upon syndicate activation. This option is provided in the registration form. Assembling the required number of participants is essential for syndicate activation. Alternatively, participation can be anonymous, in which case the participant's name will not be revealed to the syndicate organizer during activation. Instead, a trustee, lawyer, or other legal representative may act on behalf of the participant in finalizing the transaction. However, the participant's name may be disclosed to the organizer if they fail to fulfill the syndicate's conditions. Syndicate organizers may opt for mandatory disclosure of participant names upon syndicate activation, making anonymous participation impossible.
Once the required number of participants (quorum) is reached, the contact details of BBB network members who have joined the syndicate, along with their digitally signed Letters of Intent (LOI) for open participation or contact information of authorized persons for anonymous participation, are forwarded to the syndicate organizer. At this point, the syndicate is considered activated. Subsequent communications with syndicate participants, following the transfer of their contact information to the syndicate organizer, are managed directly by the organizer.
Restrictions on Syndicate Publication:
Only one syndicate per company/vendor can be published for free concurrently. Additional syndicates require an extra fee. Placing a second active syndicate costs $1000, with each subsequent syndicate incurring the same fee.
Syndicates by BBB Network Members
Members of the BBB network have the autonomy to initiate syndicates targeting corporate vendors. For instance, an active BBB network member may rally fellow members to establish a syndicate focused on acquiring products or services at discounted rates, subject to specific terms, or developing exclusive product lines tailored for syndicate members. The scope of proposals can vary.
A BBB network participant can register a syndicate either anonymously or publicly within the platform. They can select a vendor of interest, propose terms of execution (syndicate proposal), specify sanctions for refusal to execute, and set deadlines for execution. Once a syndicate is registered, other formal BBB network members will be automatically notified of the syndicate posting on behalf of the BBB network member. Upon registering a syndicate, the organizer will receive a link to invite potential syndicate participants. We remind you that before participating in the syndicate, potential participants must register as a member of the BBB peer-to-peer network and meet the minimum criteria for eligibility.
Syndicate Activation:
Upon formation of the minimum number of participants required to activate the syndicate, the syndicate organizer will receive a notification accordingly. Following final confirmation of the syndicate's terms by the organizer and closure of applications for participation (if conditions dictate a discrepancy between the minimum and maximum number of syndicate participants), our platform will forward this offer on behalf of the participants to the vendor(s) for consideration.
Acceptance of Syndicate Offer
Upon acceptance of the offer by the vendor, both the syndicate organizer and its participants will gain access to products or services directly from the vendor, as per the proposed terms.
Responsibilities of the Parties:
Upon acceptance of the offer, all syndicate participants assume responsibility for fulfilling transaction obligations, as outlined by the syndicate organizer during registration. Similarly, upon accepting the offer, the vendor commits to honoring the transaction terms for all syndicate participants. Failure to meet these obligations results in the vendor bearing responsibility as specified in the syndicate terms.
Vendor's Right to Reject Syndicate Offer:
The vendor reserves the right to decline the syndicate offer and propose alternative terms by registering their own syndicate on the platform. In the event of such rejection, the syndicate organizer and participants will receive prompt notification.
Changes to Syndicate Terms:
Changes to syndicate terms are permissible only following vendor rejection. Once a syndicate is registered, the organizer cannot alter its terms. However, during the creation phase, the organizer may seek guidance from our team. Subsequent changes to the terms are permitted after the vendor declines the initial offer.
Termination of the Syndicate:
The syndicate ceases operation under the following circumstances:
Failure to recruit the required number of participants for activation within 60 calendar days. If the syndicate organizer does not renew the syndicate within 5 days, information about it will be removed from the platform.
Rejection of syndicate terms by the vendor. If the vendor declines, the syndicate organizer can propose amended conditions. All syndicate participants must then confirm their continued participation under the new terms. Upon confirmation, the updated syndicate can be resubmitted to the vendor for review. If rejected again, requests for term changes or similar syndicate registrations with the same vendor(s) will be declined by the platform.
Acceptance of the conditions by the vendor. Upon completion of the transaction (syndicate redemption), the syndicate is considered closed and moved from the active list to the archive.
Confidentiality:
To maintain confidentiality, participant names will not be disclosed to vendors without formal consent, as provided in the syndicate registration form for both identified and anonymous participation. Beyond specific transactions, participant names will never be shared outside the platform or with vendors not specified in the syndicate terms. This ensures a fundamental level of confidentiality.
Organization of Syndicates on Behalf of the BBB Platform
Our organization may independently initiate syndicate creation based on supply and demand information for both BBB network members and corporate vendors. We reserve the right to seek financial gain in these syndicates and withhold this information from interested parties.