Capital Raising
Raising capital is one of the
most difficult aspects of growing a business. We know what information
investors need to know and how they invest their money.
A general overview of the process
is as follows:
1. Create Materials for
Potential Investors:
a.
Write a comprehensive Business Plan with detailed financial projections. A thorough, well-written business plan is absolutely essential to the
capital raising process.
2. Identify, prioritize,
and contact buyers:
a.
Identify and prioritize appropriate investors. SVR's team has
years of experience that enable us to recognize which people, firms,
and corporations may have an interest in investing in your company.
c.
Coordinate and negotiate non-disclosure agreements, follow-up with interested
targets, and deliver the next round of materials (this round typically
includes the full Business Plan)
3. Solicit and evaluate initial expressions of interest:
a.
Establish credibility, financial resources, and seriousness of intent
of prospective investors.
4. Negotiate and structure
the transaction:
a.
The structure of a deal can be more important than the price. Form of payment, i.e. cash, stock, options, tax treatment, timing considerations
will be crucial elements of the transaction.
b.
Work closely with a prospective investor, their lawyers and accountants
to explore options, clarify goals and resolve issues.
c.
Shield you and your company from day-to-day burden of this process while
preserving buyer-seller relationship and negotiating flexibility.
5. Facilitate contract negotiations,
due diligence, and closing:
a.
Work with company counsel to draft a Letter of Intent and/or definite
agreement once there is an agreement on price, structure, and terms
of the transaction; this document is a precursor to a formal contract.
b.
As documentation is prepared, address and resolve issues as they are
identified.
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