|Show Up Prepared
All serious lenders, investors, and buyers will have probing questions.
More effective than reacting with off-the-cuff answers is to lead with a presentation that anticipates the questions. Almost all businesses have unique elements that show up on financial statements as weaknesses. Fortunately your business is more than the numbers on your financial statement. In fact, most companies’ financials provide limited insight into the real strengths and opportunities of your business. Head off unnecessary concerns by guiding readers’ understanding from the first line of your presentation.
Do not contact lenders, investors, or buyers until you have prepared a comprehensive presentation of your business.
As soon as you announce your intentions, interested folks will begin asking for information. That is the worst time to be scrambling to gather documents and explanations.
Successfully raising capital or selling a business requires your energy and focus.
It should not be approached in the ‘spare time’ of an executive’s week. The impression you make on a lender, investor, or buyer hinges on the thoroughness of your presentation and the timeliness of your responses to them.
Understand your financial statements before being asked about them.
Be prepared to explain every line of your statements when asked by thoughtful readers. And head off unnecessary questions by using language that communicates clearly. (There is no need for verbosity such as ‘Accretion of Capital Grant Equity’ when ‘Grants Received’ gets the job done.) Confidence will flow when both you and your financial statements are clear.
Research lenders’ characteristics or buyers’ appetites and target a limited number of candidates.
Campaigns that focus on the most likely banks, investors, and buyers produce much better results than the typical shotgun approach. It isn’t easy but you can identify higher-probability targets for your particular capital need. [This is where, frankly, Strategic Rail Finance shines.]
Preparation is the key. Our next post, ‘Manage Your Credit Identity’ will cover a critical element of your preparation. We will provide specific instructions on the steps for managing your personal and business credit records that every lender sees.
If you would like to discuss a debt or equity raise, email us hereIf you would like to discuss a business acquisition or sale, email us here