Capital Raising from VC and PE funds

Business Planning and financial modeling: Along with the client, we prepare a detailed strategic business plan that takes into account the historical, current and future business. This business plan then flows into a financial model. This exercise allows us to understand the business in detail. This way we can represent the client to potential investors in a proper manner.

Valuation: Based on the financial model we suggest a valuation range to the client. This valuation is derived from either one or more of traditional valuation techniques like discounted cash flows, comparative valuation multiples etc.

Structuring: As important as valuation is the correct deal structure. We work to suggest an optimal structure that meets the client’s requirement while being attractive to the investors. The structuring includes things like the instrument (equity, preferred equity, convertible debt etc.), terms of investment, investor rights related to management and exit etc.

Short-listing of Investors: Each investor has a specific mandate. We identify the investors who fit into the deal structure. These Investors are then made a presentation that details the business plan and the deal structure.

Term Sheet preparation and negotiation: After reaching a preliminary understanding with potential Investor(s) we draft the term sheet. This is done in consultation with our client and then we negotiate the term sheet with potential
Investor(s). This is a critical stage because the signed term-sheet is a very important milestone in the process. It captures the in-principal understanding and therefore should be as detailed as possible to have no scope for confusion later.

Due Diligence: We provide due diligence support to the client by coordinating the process between the client, Investor and their agents like lawyers and accountants.

Documentation: We work closely with legal firms of our client and the Investor to ensure that the negotiation and drafting of shareholder documentation is efficient and smooth. We ensure that the essence of term sheet is captured in the legal agreements.

On-going advisory services: Many of clients request us to provide on-going advisory services to them even after the deal is executed. We are always delighted to provide this service because it allows us to strengthen the relationship with our client.