How Corporate Financial Advisors Can Help You Raise Capital More Effectively
With a strong market for investment in the middle market, some CEOs may think they do not need corporate financial advisors to guide them to a good deal. While it is possible to raise capital without relying on an advisor, money spent on an advisor with a strong corporate finance investment banking background will be well-spent. Corporate financial advisors can guide you towards a deal that will help your business raise more capital more quickly than if you do it on your own.
What can corporate financial advisors do for your business?
Corporate financial advisors can do several things to help you raise capital and generate more wealth for your business:
- Growth strategy – Corporate financial advisors draw on their years of experience to help businesses formulate an appropriate strategy for growth. This is a key step in the capital-raising process. An advisor will assist in defining goals around growth, formulating appropriate objectives based on those goals, and developing a plan to achieve those objectives. An advisor will also help you implement the plan, increasing your chances of success.
- Knowledge of the investing world – While you may have several investors interested in your business, do you have the expertise and knowledge to determine if these investors are the best ones for your company? Are these investors placing a high valuation on your business and are their interests aligned with your vision for the business? A good financial advisor will conduct a thorough analysis of all of the investing options so you end up with the best value and terms. It may very well be that the right investors for your business are not currently on your radar. They may be beyond your current network of contacts.
- Due diligence – Due diligence is an essential step in this process, especially if your business is exploring a merger or acquisition as a means to raise capital. A thorough analysis will look at both financial and cultural compatibility of the businesses and will yield a more reliable valuation of the companies. This is a difficult step for a business to do on their own and requires expertise to be done properly.
- Neutral third party – Any business transaction can benefit from the involvement of a neutral third party to act as an intermediary. This allows you as the CEO to fully entertain offers from a number of parties while not getting caught up in the haggling and negotiating that typically happens during the process.
- Time – The more time you are able to spend focusing on running your business efficiently, the better. Allowing someone with expertise around corporate finance solutions do the work for you keeps you focused on what you do best. This translates into the best valuation for your company.
- Closing the deal – No matter how well you run your business, chances are you are not an expert when it comes to capital transactions. Securing investors and closing out an M&A deal involve many steps and typically take longer than expected. But a good financial advisor knows the ins and outs of this process and can get you through it in an efficient and timely manner. In the end this can save you money.
Working with the right advisors
If you do make the decision to work with a team of corporate financial advisors, be sure they have the years of experience required. DealSource Partners has over 20 years of experience in managing equity and debt-raising engagements as well as mergers and acquisitions. With offices located in such major cities as New York, Philadelphia, and Los Angeles and in 26 countries worldwide, our global network is skilled in corporate planning, growth strategy, due diligence, and structuring and negotiating transactions. This kind of know-how can guide CEOs on the optimal path to capital generation.
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