HLS Consulting professionals will help you build and refine your company’s proposal for additional capital, work through the projections and optimal capital structures, and will assist in marketing your capital raise and negotiating the terms with prospective investors.
When seeking outside funding, you will first have to develop a capital-acquisition strategy. HLS Consulting professionals will assist you in developing your capital-acquisition strategy by helping you answer the following four questions:
1. How Much Do You Need?
HLS Consulting professionals will help you figure out how much money you have to raise to achieve specific time-measured milestones, such as launching a new product, or expanding your market share through an acquisition.
2. When Do You Need It?
The financing process always takes longer than anticipated. For bank loans, expect two to three months. For Small Business Administration (SBA) loans, expect four to six months. For angel investment or venture capital, expect three to 12 months. For grants, expect a year. HLS Consulting professionals will work with you to determine the most applicable and efficient method of financing your business need. At a minimum, you should start raising money six to nine months before you expect to need it.
3. From Whom Do You Want It?
You need an investor who understands the industry sector your company serves. You also want an investor who you like and respect as a partner, because you will be with your investor for two to seven years. You will want someone you can work with during the inevitable ups and downs of business cycles. HLS Consulting professionals will help you compile a list, and reach out to financiers who understand your market or product and have worked with companies at the same stage as yours.
4. What Compromises Will You Accept?
If you're seeking equity financing, you will be selling pieces of your company. Loss of equity is one compromise, loss of control is another. Considering ownership and control separately is critical as you run the risk of the board running the company instead of management. Finally, while a higher implied company valuation may generate more favorable financing terms, it may be worth taking a lower valuation to get a stronger group of investors. HLS Consulting professionals will help you weigh the pros and cons of the various compromises required in securing financing for your company.
For more information please contact us at INFO@HLSConsult.com
HLS Consulting 2018
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