Our expertise

Fundraising prep

 

We specialize in a value creation strategy commonly employed by growth-focused private equity firms in developed markets. It involves investing with a view to nurture a valuable asset for sale over a medium term. This strategy works best for SMEs with a deep but narrow circle of competence, ran by entrepreneurs as their sole concern.

While banks generate returns through interest, private capital create value through liquidity – the eventual sale of their equity stake in the SME. As successive investors commit capital, the unrealized value of the SME grows. However unless an exit event is engineered, that value remains locked.

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The visibility of an exit event is paramount for private capital investors, hence the best proposals are those with this explicit goal in mind. We advice clients on the structural, governance, business model and product positioning adjustments they will need in order to prepare for this process.

Business plan formulation

 

The flexible nature of private capital allows SMEs to pursue business plans that may not meet the strict cash flow and collateral requirements of bank loans. As long as SMEs can convince their plan is compelling, feasible and scalable, then financial breakeven may be postponed in favor of continued growth.

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We are particularly keen on phasing out business plans with qualitative milestones and fundraising in series depending on progress achieved. This multi-stage approach not only reduces risks for investors, but also allows SMEs to raise subsequent rounds on more favorable terms.

Financial modelling

 

While many SMEs are familiar with financial projections, few are able to provide projections sets with sufficient rigor to survive the due diligence process of private capital investors. The goal of financial models are not to provide accurate targets, but to provide clarity on the SMEs operational metrics, revenue model, costs structure, working capital and CAPEX cycles.

We also construct our financial models based on the status quo of the SME today as opposed to a blank canvas. This allows our clients to plan ahead on existing liabilities and leverage existing strengths to negotiate better fundraising terms.

Corporate presentation

 

Whether they are considering bold, innovative projects to leap ahead of competitors or looking for partners in a greenfield venture, we ensure our clients can weave compelling stories for their SME in order to embark on the fundraising journey with their best foot forward.