Raising capital

New capital needs to be injected in the best possible way. Good advice and careful analysis are the ways to correct price and present businesses to potential buyers or investors.

Good advice is valuable when it comes to raising capital for the business in an optimum way. If the business is to have risk capital injected, there are certain questions that the business owner needs to clarify. How large a portion, in the form of shares, must the owner surrender? How much capital is needed, and how much can be injected into the business? Where and how can we find buyers for the shares in the company? For the business owner there is great value in raising capital on the best terms.


Analysis of the company and valuation of shares

No businesses are alike. The owner knows his business down to the last detail, but often does not see the same risks that a potential buyer sees. We know the issues that affect the overall picture one way or the other and when we set a valuation of a company, we use different methods, involving both earnings, cash flow and capital structure in our overall analysis. Our realistic valuation views the business through the seller’s and the buyer’s eyes.

This analysis is the key to understanding the business and to pricing. We conduct a thorough review of the whole business, the company’s external partners, customers and suppliers, and competitors and industry conditions. The analysis also includes an internal review of the business’s products and services, the skills of management and staff, and a financial analysis of income statements and balance sheets.


Presentation of the company to buyers and investors

The overall impression is important, so the business needs to be presented in the best possible way and with supporting explanations of any negative aspects.  We use our large network to look for potential investors or buyers, and we prepare highly professional marketing materials to be used in the process of raising capital.


We look for the greatest possible synergy

Buyers or investors with knowledge of market conditions provide the greatest value to the company.  We know that insight creates value for the company, so we strive to find buyers who are able to make the best of the business’ potential. Buyers and investors who achieve synergies through their ownership also typically pay a higher price.


Negotiations and a good result

The negotiation phase is sensitive and we handle the whole process between buyer/investor and seller and resolve any discussions or disagreements that may arise. The price per share is an important negotiating point where we need to find the best possible solution and the compromise that best suits the owner while making it possible to sell shares. Among other things, it is important to be familiar with different acquisition models that can satisfy both parties.

During the process, less important aspects may have a major bearing, and here we can advise so both parties’ views are considered and we can find the compromise that keeps the process moving and brings results. Our active involvement in the negotiations ends only when the shares have been sold and the investment agreement has been signed.


Contact us if you want to know more