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Capital Raising

Raising capital comes into play when a company needs to finance an expansion or a strategic acquisition, overcome a financial distress, buy out a shareholder who wishes to leave the business or allow the owner to take some money out of the business by converting equity into cash through the issuance of debt.

The two key factors in raising capital for a company are first, to know who potential sources of capital are and second, to know how to present the company to these sources of funding.

Typical phases of the fundraising process are as follows:

  • Studying the client’s business

    In order for us to be able to help a client raise capital, we first need to analyze the client’s business. Only then can we identify how best to structure the fundraising.

  • Deciding on the Structure

    The structure of the deal is a key factor in financing arrangements. The initial decision between equity or debt or mezzanine financing drives the rest of the process.

  • Identifying Financing Sources

    As with the company sale process, we start by identifying possible sources of capital. Finding the proper investor is the critical step in a financing transaction.

  • Preparing the Financing Memorandum

    Our experience has proven that the work that goes into preparing the financing memorandum greatly increase the chances of a successful transaction.