FindIt - Maximise, Accelerate + Save

Deal preparation, valuation, structure and due diligence

We are both entrepreneurs and active business angels; we have successfully raised funds for numerous companies like you. In this stage we review your opportunity through the eyes of an investor.

 

The first step is for us to understand in some detail your business proposition. Unless we know this it is very difficult for us to help you clearly articulate your proposition to investors. As a first step we will want to do a detailed desk top review of your business plan in words and numbers. This usually takes us the best part of a morning – we then need to sit down with you for half a day – preferably the afternoon of the same day when you are ‘fresh in our minds’. We will want to discuss;

 

The proposition



What is the proposition? is it correctly positioned? is it clear? is it exciting? is it substantiated by reference to third parties? and can it be easily understood by a ‘layman’?

 

We do not offer a business plan writing service. However the plan or ‘Information Memorandum’ is a fundamentally important document. It is surprising how many plans we see that at best assume too much foreknowledge and at worst are incomplete and/or unintelligible. We will make constructive suggestions on how the plan can be improved.

 

We are focusing on how the proposition is presented and positioned – not how it is articulated.

 

The Financial Plan

 

Is it complete? Consistent? and comprehensive? are the assumptions realistic? Is it clear how you realistically hope to monetise your opportunity?

 

We do not create your financial plans for you. However it is extremely important that they stand up to close scrutiny and are based on realistic assumptions. We are as much interested in how well you grasp the numbers as we are in the projections themselves.

 

Valuation

 

Investors have very specific expectations on how much they believe your company is worth. Network managers will refuse to market deals if the valuation is not ‘sensible’. Even the most exciting of opportunities will fail to raise funds from investors with the ‘wrong’ valuation.

 

There are, in fact, no hard and fast rules on how to value an early stage business. It will depend on the stage the business is at, the sector it is in, the size of the market, the experience of the management team etc.

 

We understand very clearly what level of valuation you can expect to achieve for your business. We will make sure that you know what valuation is achievable. We will also challenge you to think whether you are raising too much or too little at this stage and whether you should be considering pure equity or an equity and debt mix. Finally we will make sure you are aware of the various ‘devices’ available to you that enable you and your investors, to agree to disagree on a valuation!

 

We understand very clearly what level of valuation you can expect to achieve for your business. We will make sure that you know what valuation is achievable. We will also challenge you to think whether you are raising too much or too little at this stage and whether you should be considering pure equity or an equity and debt mix. Finally we will make sure you are aware of the various ‘devices’ available to you that enable you and your investors, to agree to disagree on a valuation!

 

Due diligence

 

Nearly all investors will want to carry out detailed due diligence on your Company prior to investing their funds. Providing the detailed due diligence information and documents in a readily accessible form will greatly increase the chances of success and the speed at which the investment will close.

 

We will tell you what a network manager or investor is likely to need to see. As part of our service you will have access to a cloud/web based system (the Online Deal Room – ODR) which will allow you to collate and store this due diligence information in a single, easily accessible place. The ability for interested investors to have ‘self service’ access to the detailed information will dramatically improve your work load whilst speeding up the process of closure. Furthermore some networks will want to charge you for the service of collating due diligence – if you have already done it then you have a very good argument for them to reduce their charges!

 

The ODR also provides you with comprehensive tools to track and manage interested investors.

 

Important note: You will own the information provided and you will be solely responsible for ensuring its accuracy and completeness.