Simplified Capital Raising

The opportunity to access long term capital through an initial debt or equity offering has always been attractive, especially for companies that are growing quickly. At the same time, the process is time consuming and often daunting, especially for executives who are unfamiliar with how the capital markets work. It is also stressful, as raising public capital is an expensive proposition, with total fees on an IPO typically averaging 10% of the capital being sought.

We Offer a Bridge

As Wall Street veterans, we offer a bridge to the extended investment community. We serve as educator, coach and translator, offering a highly customized and bespoke approach. We anticipate each step in the process and translate technical data and input to allow for sound and timely decision making. By providing independent advice, we enable our clients to feel confident in the long term benefit of the decisions being made and to maximize the return on the fees being paid.

Our goal is to increase control and transparency for our clients, while enabling them to build confidence in their own ability to make sound decisions around capital markets activities. We focus on keeping each member of the team informed, and every step of the process running smoothly to improve the overall outcome.

Through a methodical three step process we navigate our clients’ capital raises to optimal execution. Our primary roles and responsibilities on a capital raise fall into three broad categories:

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Investment Positioning

Unearthing the value proposition is the most critical phase of the process, fortunately it is also the most controllable. Depending on the company, this phase can be time consuming, though it allows for the rest of the steps to be accelerated by supporting a better and more predictable outcome. Most important, a thoughtfully laid out and well received value proposition should also garner a premium valuation and a lower cost of capital.

Key steps in this Process:

  • Review the business model and competitive position to uncover the value proposition

  • Analyze corporate strategy relative to capital needs

  • Guide the finance team to establish reliable quarterly earnings and cash flow forecasting tools

  • Recommend and optimal capital structure for the short and long term, including sequencing if more than one transaction is required

  • Partner with management to create high-impact presentation materials for financial community audience

  • Oversee rehearsal of formal presentation and coach management to deliver a crisp presentation in meetings with the investment community

  • Determine IPO readiness, or next steps

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Deal Preparation

In the second step of the process, we leverage our experience and relationships to navigate the logistics of the upcoming capital raise. We maintain long standing working relationships with the key influencers in the community, from investment bankers to sell-side analysts and institutional investors, as well as important legal, media and PR contacts.

Key steps in This process:

  • Formulate marketing and distribution strategy

  • Pre-screen underwriters for industry leadership, experience and commitment

  • Facilitate introductions to the sell side and buy side

  • Coordinate and host a bake-off

  • Determine and recommend the optimal deal team structure, gross spread, splits and incentives

  • Advise underwriters on post bake-off accountability

  • Orchestrate underwriters’ due diligence and documentation processes

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Pricing and Execution

Once the deal preparation phase is completed, the company is ready to launch its offering. Depending on market volatility, or how unique the company’s value proposition is, premarket education might be recommended to give the influential investors more time to get familiar with the investment opportunity.

Key steps in this process

  • Review current market sentiment and set firm parameters for underwriters around anticipated outcome

  • Anticipate potential challenges and discuss ways to avoid or overcome

  • Review proposed allocation, mix and concentration between institutional, retail and international investors

  • Price and ring the bell!

  • Discuss opportunity to exercise Green Shoe

  • Monitor research coverage and plan for investor marketing events