December 12, 2017

How to please investors

January 29, 2011    PracticeРаспечатать эту статью

How to please investors

Since autumn 2008 cobstvenniki SME began more actively to seek opportunities “alternative” – without the loans, at the expense of shareholders’ equity – finance their business.

I would single out four main motive of investment transactions of the crisis period:

  • Output of the founding fathers of the business(«wait out the storm in the Canaries”). The owners of many of today’s mid-cap businesses started his business 15 years ago at the age of 30-35 years. Today they are already under fifty. 15 years of hard work have brought some fruit. It’s time for them to eat while there is still an appetite. Previously, they had planned to sell the business in five years or ten, but the crisis has pushed them to a more rapid decision making.
  • Mergers, Acquisitions, redistribution of the market («It’s time to trample someone else’s backyard chickens”). These are businessmen who have survived the forces, resources and desire to “fight” on. Market share, and even falling, never cost so little.
  • «New speculators»(«It’s simple … Buy the gift of three business-for-one”). These are the few who believes that the crisis – a great place to start.
  • Forced to deal («Business in tears, the purchase of debts”). Buying troubled assets at below market prices. First, a bank liquidity crisis, then the devaluation of the ruble, then the sharp decline in demand for durable goods and investment use. All this adds grist to the mill forced to deal with the sale of the property.

As you can see, the reasons for investors to find many, but only one way – “and prepare to go cap in hand to fist.” In any of the above cases, the process of preparing a long and painstaking. Not for nothing in investment circles it is often compared with the wedding (marriage).
What stage is this process? Almost the same as in ordinary life: familiarity (“first date”), grooming (“sighs, groans, walk under the moon and gather the necessary information”), sentence (“send matchmakers”), a dowry. Refinement of the estimates and agreement of terms (“a marriage of convenience”), making the marriage contract (“if that – that divorce and mother’s maiden name”), marriage (“Wedding, rings exchanged, the registration of a wedding banquet.”)

But, you know, hard times have made some changes in the behavior of the future newlyweds. If the marriage takes place, it is likely to be uneven. Therefore, the bride (who is looking for an investor) should be prepared with particular care to introduce yourself capricious bride at its best. We recommend that owners do before investment negotiations:

1. To clarify the relationship of owners and to agree on joining the process of attracting investments.

2. To ensure transparency of the company.

  • to clean up the ownership structure
  • to clean up the organization and management of the formal documents
  • restore order in managerial accounting and finance

3. Develop and formalize a long-term (five years) financial strategy and business model.

4. Develop a strategy to attract investment.

  • Rate current and future business value
  • Decide the type of investors attracted
  • Think about ways the structure of the transaction

5. Carry out pre-investment “package” business “: to prepare the corresponding presentation documents (proposal investor), in which very clearly state your business idea, the need for investment, the method and the size of the investor profit from them, the key competence team.We must take into account that the next few years, the investment market for small and medium business will be “buyer’s market.” The main groups of potential investors today:

  • Those who had accumulated before the crisis a “fat” in the highly profitable industries, and not got into debt
  • Those who successfully realized its investment assets before the crisis
  • Professional players – private equity funds
  • Investment structure with access to public money, including state-owned corporation (MER, Rusnano, etc.), regional public-private funds, support

The main characteristics of today’s investors:

  1. Actively investing in new project structures now significantly less than before the crisis .
  2. Saveof investment funds for many important high yield .
  3. Most professional investors screening system works projects to hit even on a preliminary review.
  4. They have criteria for evaluating the cost and the investment attractiveness of the business (market, competitive position, financial condition and experience of the management team).
    They
  5. versed in the fundamentals of finance and are able to calculate their benefits under specific terms (IRR, NPV, PBP)
  6. They are not very
  7. believe in promises, especially oral. They need documented arguments and confirm the facts.
  8. They know how to assess risks and will apply the discount / premium to your assessmentprices of the purchased shares.
  9. They want all touch hands . They will evaluate the entire system of governance, including an assessment of the professionalism of key managers and current business owners.
  10. They need long-term plan , expressed in market and financial performance
  11. They have experienced lawyers for the structuring of the legal component of the transaction

Like the investor is not easy. But chances are there: a qualitative prepared for investment projects in the market for some time to be a bit, since most transactions will be forced nature and those who are more fully prepare for the proposed transaction would have significant advantages.

Author – Director of consulting company “Marchmont Capital Partners.”

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