Raising Finance

If your business needs assistance in raising finance, we can help. Finance needs can arise for a number of reasons, such as expansion of existing businesses, acquisition of businesses, management buy-outs or management buy-ins. We aim to provide creative solutions and ideas that increase value to clients during critical periods and when they are making important decisions that define their future. We can assist you in the development of your business plan, assess the optimal financial structure, source investors, assess offers and negotiate terms. Through our deal experience we have established a network with the investment community which provides access and introductions to many sources of finance both domestic and international.

Debt Financing
Standard types of debt include bank or investor loans, issued notes, and corporate bonds. These financing loans are provided at an agreed-upon interest rate and time period. Debt instruments can be secured by assets of the corporation, or unsecured (backed by a pledge of credit). The advantages to a business of receiving debt capital include cost of capital, limited loss of control, and reduced personal risk (provided no personal guarantees are required). Advantages to a lender include being placed higher in the pecking order to receive funds in liquidation (the shareholders), and possibly than most other creditors (if the debts can be secured), a set rate of return and a time period for repayment/return.

Equity Financing
Equity financing, on the other hand, provides stock to the investor in exchange for funds. This is usually the form of investment that venture capital funds, angel investors, or other private equity funds make. In exchange for the investment, the investor can benefit from the growth of the company and receive either common or preferred stock. Private equity investors provide equity funding for entrepreneurial organisations to enable companies to grow or refocus, typically through making strategic acquisitions or through carrying out rapid expansion programmes. In return for the financing provided, the private equity house takes a substantial stake in the target company's equity which, should the strategy succeed, increases significantly in value. Through our team of experienced corporate lawyers we are able to provide you with assistance in the following:

• Development of your business plan.
• Assessing the optimal financial structure for your business.
• Sourcing and introducing you to investors/sources of finance.
• Assessing offers and negotiating terms on your behalf.

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