1. Shaping Up
The first stage, “Shaping Up” refers to ensuring that your company is “investor friendly”. It needs to operate transparently, efficiently and must be structured in a way that ensures there’s plenty of growth that the potential investor(s) can share in.
The key area that need to be optimised prior to considering the entry of external investors include:
- A vision for growth that includes a feasible business and financial plan.
- A well-constructed shareholder agreement that clearly outlines the responsibilities of the owners and their obligations.
2. Sourcing Funds
The second step, “Sourcing Funds” looks at the optimal ways to attract investors to your company.
This starts by having a realistic view of what your company is worth, modified by the fact that you may be dependent on external capital in order to enjoy any of that growth. Assessing your realism starts by completing the Capital Raising Scenario.
The form will only take you about 10 minutes to complete and gives us all the information we need to prepare the scenario enabling you to see:
- How much of the company you will still own;
- The amount of capital you could reasonably raise based on the information you provide;
- What your company could be worth after the Capital Raising.
3. Negotiation and Transaction
SalesMonkey will be your guide, shepherding you through in a legally compliant fashion and the steps involved in a successful capital raising via ASSOB. We undertake to ensure that all offers, actions and communications under our control comply with Section 708 of the Corporation Act 2001, as well as larger offers made under Full Disclosure.
SalesMonkey’s involvement includes:
- Developing the presentation material and presentation pitch for investor meetings
- Assisting with the Information Memorandum, Prospectus or Offer Documents
- Organising and running investor meetings and investment expos.
- Briefing Public Relations agencies to (legally) publicise the offer.
4. Next Steps
With the finances raised and the business plan able to be actioned, prepare yourself for a whole range of new challenges! The pains of growth include continual employee motivation in a more hierarchical set up, the challenges of more systems and formal procedures where none would have previously existed.
SalesMonkey’s deep experience with fast growing companies can assist your company to enjoy the upside of growth while managing the challenges that can occur. These include:
- Ongoing reviews of the Business Plan including future cash flow projections.
- Advising on the management of investment relations.
- Advising on the implementation of systems and procedures to ensure company’s future scalability.
- Recruitment of management personnel.
- Development of distribution channels including export.
- Future capital raising requirements.
- Secondary sales of shares to facilitate capital restructure and / or ESOP schemes via ASSOB.
See how SalesMonkey can help you: