Strategic advisory

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Growth financing

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Due diligence

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Growth financing

Companies with a clear strategy forward and prospects for dynamic growth, often face problems at the stage of choosing a proper financing source and subsequently – acquiring necessary funds at attractive terms. The choice gets more and more difficult with the extension of the market offer of banks, venture capitalists and mezzanine providers. A proper financing should not only be “cheap”. Most of all, it needs to be tailored to the needs of the Entrepreneur. These can cover:

  • maximization of own return on investment,
  • keeping operational control over the business,
  • acquisition of a partner, which will support the market perception of the company,
  • acquisition of an industrial or business know-how,
  • access to a stable financial backup in case of future investment opportunities,
  • flexibility as to the timing and mode of exit,
  • control over the scope of information released to the market, etc.

Based on the analysis of available alternatives we assist you in selection and execution of the optimal solution. Our support in this process is not only about construction of financial forecasts and development of a business plan. First of all, it covers assistance in the negotiations with investors and overall process management, until the very signing of final agreements. Retaining an advisor at this stage allows you to:

  • mitigate the risk of mistakes, which could materially impact the future of the business,
  • limit the time devoted to the process by the Entrepreneur, thus giving him/her the opportunity to focus on core activity, and
  • separate the Entrepreneur from certain negotiation issues, which could negatively impact his/her future cooperation with the investor.

Example:

Entrepreneur – manufacturer and distributor of construction materials with a significant market share, faced an opportunity to boost the growth of his company by taking advantage of the weaknesses of its foreign competitors. In his view, additional financing invested in working capital (direct purchases of raw materials in the Far East), as well as acquisition of certain smaller targets, could enable him to significantly increase his presence on major European markets. In relation to that he appointed an advisor, whose role was to:

  • estimate the financial needs of the company,
  • devise an optimum financing acquisition path, taking into consideration its planned use, financial condition of the company, its growth prospects, as well as long-term goals of the Entrepreneur,
  • execute the financing acquisition process.

The process included development (in cooperation with the company’s management) of a business plan, which presented the company’s strategic objectives and its financial forecasts. The document served as a tool for the prospective investors to evaluate the attractiveness of the venture, business risks, as well as company’s ability to serve the financing. The business plan was subsequently used as a basis for discussions with banks and mezzanine providers (selected as optimum source of financing). Properly devised strategy enabled the Entrepreneur to close the process in a relatively short period of time, which was a key factor of his future success.