„Money is a timid fawn!" Herrmann-Josef Abs
CONCEPT
There are only a few companies, which can finance growth and overcome problems without external help. The shortage of borrowed capital due to the banking sector has caused ever increasing difficulties in company financing over the past ten years.
Not only fast-growing new companies but also established smaller and medium-sized enterprises are often faced with considerable difficulties in obtaining adequate cover for their capital needs. On the other hand, there is wide range of investors with varying attributes and investment approaches. Despite intensive searching on both sides, it is not so easy for those in search to find those wanting to be found. There are a number of reasons for this, which generally have no connection to the company’s profile. Those who are familiar with the financial community will find the ideal financier for every issue.
EXTERNAL SERVICES
Do you have time to build up that network of contacts, to then be in a position to search for the right investor? Often there is insufficient know-how to adequately assess the financial alternatives for the situation in question. Furthermore we offer a network built up over many years with the necessary contacts fort he organised capital market. First discussions can be arranged far more quickly, accelaerating the acquisition process.
We accompany you in the preparation stage and throughout first discussions and support you in the establishment oft he business relationship. Thus your chances of success are massivley increased. You shorten the investment process decisively and gain valuable time and support in establshing the requirements, alternative choice, preparation and execution of the capital measures as well as the selection and utilisation of sponsorship programmes.
Special path: German technology companies are investment objects of interest for Arab investors. This applies especially when the company shows its potential, to set up its own production facility in the investor’s home country, where the financier again can be of great assistance. As with any business in the Arab world, an commitment will only be achieved, if the partners have an understanding on a personal level. Common interests are therefore defined in advance. The partners are prepared and supported from the first meeting through to the negotiations.
SELF CONCEPTION
Selling, yes, but not deceiving.
METHOD
- Systematic search
- Examination of actual and target performance
- Analysis of the current position
- Short anonymous profile into the network
- Transfer of products by IPO,DPO, mezzanine, pre-trade emission
- Preparation for due dilligence
What qualities does the ideal investor for your company has to have? In our experience, taking on an investor is always the beginning of an intensive partnership. This runs smoothly, if expectations and requests from both sides are analysed and agreed upon in good time. It should not be simply a question of the conditions laid down by the new partner, who is providing the company with private capital. There must be clarity regarding the rights the investor may claim to access information and to collaborate. The question should not be under-estimated, whether this individual might be able to assist the company seeking funds with advice and indeed actively.
In this context, considerable care should be taken during the pre-selection of potential investors. Based on this opportunity-risk profile as well as on individual customer requests, the desired contact is established. Following the discussions, including establishing the arguments, through to a successful conclusion.
ASPECTS AND BACKGROUND
Over the years, with my/our growing experience in handling companies looking for capital and representatives of the investment community, I have been able to see only in exceptional cases, an investor stepping in without that initial gut decision. There are also analyses and research results, which back up this impression.
This is related to the fact that entrepreneurs and financial experts have completely different careers and fields of interest. Actually they would hardly ever meet in their normal social environment. Generally they live in different cultures, languages and perceptions, which lead to difficulties in communication. Fundamentally it is an emotional hurdle for an entrepreneur to allow a „stranger“ access. They do not really like each other.
REMUNERATION
Retainer and Performance Bonus, see Our Products
See also: Financing SMEs
Where legal advice is required, transition-manager works closely with appropriately experienced law firms.