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10 STAGES TO INVESTMENT

    The world of investment can be complex. Our deal experts know every twist and turn. On these pages they highlight the ten key stages from understanding a client’s needs through to joyous completion.

    10

    STAGES OF INVESTMENT

    5

    VALUING YOUR BUSINESS AND STRUCTURING AN APPROPRIATE DEAL

    An important stage of the deal is formulating a valuation of the business and structure of the deal as it sets the platform for the future wealth of the shareholders. This will be subject to negotiation, so ensuring that a we have a robust position to negotiate from is critical.

    4

    MANAGEMENT PRESENTATIONS

    The next step will be to meet the investors. Investors will meet with many businesses all competing for their investment. We know what they look for and will position your business in the best possible light to catch their attention. Some of the key information we will highlight to investors includes: Articulation of your growth story, current market position, the strength of your management team, products & services, and the key differentiators that set your company apart from the rest.

    3

    TARGETING THE RIGHT INVESTOR

    We work closely with a number of Banks, Funds and Private Equity houses. Each has their own style, sector expertise, requirements and cost. The final choice of investor is always up to you, but will be able to point you in the direction of the best suited for your business.

    2

    UNDERSTANDING YOUR NEEDS (ii)

    In the case of Private Equity investment business owners often ‘roll’ a portion of their ownership stake into the new equity capital structure put in place by the acquiring firm, rather than receiving cash proceeds. This is called equity rollover and requires a good understanding of the mechanics involved. Securing the best possible terms is something we as experienced advisors will drive for you.

    1

    UNDERSTANDING YOUR NEEDS (i)

    Investment can take many forms, so understanding exactly what you are after and structuring an appropriate deal is the first step. You may be interested in a minority investor allowing you to retain control of the business, alternatively if your goal is to significantly de-risk you might consider a majority investor

    6

    INITIAL NEGOTIATIONS

    The investor will have spent time understanding your business and the market it operates in so will have their own opinion on valuation, structure & terms. We will need strong rebuttals to their counter offers. There can be complexities to an investment proposal, without fully understanding these it is easy to sign away value in your business. We will help you look out for value detractors at all stages of the negotiation.

    7

    TERM SHEET

    This sets out the investors indicative offer and terms. We will assess the valuation, deal structure and deal terms.

    8

    SELECTING AN INVESTOR

    The ultimate goal will always be to secure the right amount of cash, on the right terms to enable your business to grow. However Every investor is different and there will be trade offs to each. These trade-offs may be within the terms offered but could also be more subjective,; such as which investor do you click with, how flexible is the investor, and how strong is their industry reputation. These are all important factors which could impact your ability to attract further investors. We know the market well and will advise you navigate through these tricky decisions.

    9

    DUE DILIGENCE

    After selecting your chosen investor, they will embark on the Due Diligence phase, which is a comprehensive appraisal of your business to assess it’s commercial potential. This can be a long and arduous process and it is a possibility that investors are lost at this stage. Our job is to make sure momentum is not lost and the flow of information is in line with pre agreed timetables. Any slippage at this stage can weaken your position and detract value.

    10

    COMPLETION

    The deal is not done until contracts have been signed and cash has been deposited into your bank. CP will continue to push the deal along all the way up until completion.

    HOVER OVER EACH STAGE FOR MORE DETAIL

    1

    UNDERSTANDING YOUR NEEDS (i)

    Investment can take many forms, so understanding exactly what you are after and structuring an appropriate deal is the first step. You may be interested in a minority investor allowing you to retain control of the business, alternatively if your goal is to significantly de-risk you might consider a majority investor

    2

    UNDERSTANDING YOUR NEEDS (ii)

    In the case of Private Equity investment business owners often ‘roll’ a portion of their ownership stake into the new equity capital structure put in place by the acquiring firm, rather than receiving cash proceeds. This is called equity rollover and requires a good understanding of the mechanics involved. Securing the best possible terms is something we as experienced advisors will drive for you.

    3

    TARGETING THE RIGHT INVESTOR

    We work closely with a number of Banks, Funds and Private Equity houses. Each has their own style, sector expertise, requirements and cost. The final choice of investor is always up to you, but will be able to point you in the direction of the best suited for your business.

    4

    MANAGEMENT PRESENTATIONS

    The next step will be to meet the investors. Investors will meet with many businesses all competing for their investment. We know what they look for and will position your business in the best possible light to catch their attention. Some of the key information we will highlight to investors includes: Articulation of your growth story, current market position, the strength of your management team, products & services, and the key differentiators that set your company apart from the rest.

    5

    VALUING YOUR BUSINESS AND STRUCTURING AN APPROPRIATE DEAL

    An important stage of the deal is formulating a valuation of the business and structure of the deal as it sets the platform for the future wealth of the shareholders. This will be subject to negotiation, so ensuring that a we have a robust position to negotiate from is critical.

    6

    INITIAL NEGOTIATIONS

    The investor will have spent time understanding your business and the market it operates in so will have their own opinion on valuation, structure & terms. We will need strong rebuttals to their counter offers. There can be complexities to an investment proposal, without fully understanding these it is easy to sign away value in your business. We will help you look out for value detractors at all stages of the negotiation.

    7

    TERM SHEET

    This sets out the investors indicative offer and terms. We will assess the valuation, deal structure and deal terms.

    8

    SELECTING AN INVESTOR

    The ultimate goal will always be to secure the right amount of cash, on the right terms to enable your business to grow. However Every investor is different and there will be trade offs to each. These trade-offs may be within the terms offered but could also be more subjective,; such as which investor do you click with, how flexible is the investor, and how strong is their industry reputation. These are all important factors which could impact your ability to attract further investors. We know the market well and will advise you navigate through these tricky decisions.

    9

    DUE DILIGENCE

    After selecting your chosen investor, they will embark on the Due Diligence phase, which is a comprehensive appraisal of your business to assess it’s commercial potential. This can be a long and arduous process and it is a possibility that investors are lost at this stage. Our job is to make sure momentum is not lost and the flow of information is in line with pre agreed timetables. Any slippage at this stage can weaken your position and detract value.

    10

    COMPLETION

    The deal is not done until contracts have been signed and cash has been deposited into your bank. CP will continue to push the deal along all the way up until completion.

    HOVER OVER EACH STAGE FOR MORE DETAIL

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