Capital Sourcing Equity Raise Process
Our Equity Raise Process
Professionalizing equity raising for your business success.
Businesses often need to raise equity to support the growth of the company, make acquisitions, or buy out one of the existing owners. The team at Waypoint Private Capital helps businesses who are seeking to raise equity from institutional investors such as private equity firms. Our time-tested process was developed to professionalize the equity capital sourcing process so that our clients get the best possible terms and find a partner who can help their business grow and succeed.
Following is an overview of our 5-Step Equity Raise process:
Step 1: Information Gathering
We start our equity raising process by gathering and analyzing information about every aspect of your company. Our goal is to gain an in-depth understanding of your company so we can present a equity investors with the reasons why your company is a compelling investment opportunity.
Step 2: Prepare Marketing Material
After we have gathered and analyzed the information you provided about your company, we will start preparing the marketing materials that demonstrate to potential investors why your company makes a compelling investment. The marketing materials we prepare will include the following:
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Executive Summary
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Confidential Information Presentation
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Financial Model
The material Waypoint Private Capital creates not only facilitates transparent communication but also enhances your credibility and improve your chances of securing favorable equity terms.
Step 3: Identify & Approach Private Equity Firms
In this step of the process, we introduce the investment opportunity to the appropriate investors that align with your strategic goals and growth objectives.
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We search our proprietary databases and filter through thousands of potential investors to find those who match your life cycle stage, industry, investment size need, and goals and objectives.
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We send them the executive summary and make follow-up phone calls to ensure we reach all the targeted investors and have a conversation with them about the opportunity
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For interested investors, after securing a signed non-disclosure agreement, we send them the Confidential Information Presentation and other pertinent information that will allow them to dig in and analyze the investment opportunity further.
By targeting suitable investors, we increase the efficiency of the equity-raising process, and only spend our time and yours interacting with potential investors who will be a good fit with your company.
A company only gets one opportunity to put their best foot forward, so the team at Waypoint Private Capital carefully and professionally prepares the marketing materials prior to starting any conversations with investors.
We do the heavy lifting while you continue to run your business.
Step 4: Auction & Negotiations
The equity raise auction process is led by the professionals at Waypoint Private Capital. Our goal is to create an auction-like process that creates competition amongst investors and results in the best valuation and other deal terms for the company.
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Solicit Indications of Interest: The first step in the auction process is to solicit indications of interest (IOI) from all potential investors who received the Confidential Information Presentation. Those IOIs are due on the same date and will include all the information we requested from them in the instructions, including valuation, deal structure, etc.
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Conduct Management Meetings: All IOIs are reviewed and compared and the groups with the best terms are invited to attend management meetings on site at the seller facility to meet management and further evaluate the business.
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Solicit Letters of Intent: Only those potential investors who attended management meetings are invited to submit letters of intent (LOIs). They are due on a specific date and should be considered the best offer the investor is going to submit.
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Evaluation and Negotiations: None of the potential investors knows who else is trying to invest in the company or what terms they have offered. This gives the company an information advantage and causes investors to put forth their best offers. We will negotiate different aspects of the LOIs with the top bidders prior to helping the company decide which buyer to choose as the successful investor.
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Sign the LOI: Upon signing the LOI, the company agrees to move forward exclusively with only one investor.
Our process allows you to carefully assess each offer, compare various investment structures, and leverage your position to negotiate favorable terms that align with your business goals and growth plans.
Step 5: Due Diligence & Closing
The major terms of the investment are decided by this point, but there is still a final push before the investment is complete. The Waypoint Private Capital team will continue to guide you through this final stage of the investment until the documents are signed and you have received the investment proceeds.
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Investor Due Diligence: During investor due diligence the investor really digs into the details of the business, primarily to confirm what we have already told them. They will usually hire a third party to conduct a quality of earning examination of your financials and will examine contracts, insurance, suppliers and other important aspects of the business.
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Attorney Preparation of Investment Purchase Agreement and Other Legal Documents: Both parties hire their respective legal counsel to prepare and negotiate the investment purchase agreement and other legal documents that govern the investment transaction. Although Waypoint doesn’t do any legal work, we stay involved in this process to make sure everything stays on track.
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Closing and Capital Transfer: When due diligence is complete and legal documents are finalized, both the investor and company will sign all required documents and the money will be transferred to the company.
An efficient closing process ensures that all necessary documentation and approvals are in place, enabling the swift disbursement of funds to support your business’s immediate and long-term financial needs.
Choose Waypoint Private Capital
to Raise Equity
Expert
Guidance
Our team of professionals has extensive experience in equity raising, ensuring you receive expert advice and strategic insights tailored to your business's unique needs.
Comprehensive Support
From initial assessment to final closing, we offer end-to-end support, streamlining the equity raising process and allowing you to focus on your core business operations.
Broad Network of Investors
With a vast network of banks and alternative lenders, we can connect you with the most suitable lenders and negotiate the loans you need to meet your financing goals.
Customized Solutions
We take the time to get to know your business and work closely with each business to make sure they are putting their best foot forward and making a great impression with each potential lender.
