Our Approach
Our Approach
In this section is detail of how we address Private Capital Markets, some observations on how we think companies should present themselves and an explanation of our process when helping you source the funding you need.
Our Approach to Private Capital
Private Capital is notoriously opaque and difficult to access.
Greathead provides the infrastructure to source, process and distribute Private Capital product.
We are able to:
- Originate investment opportunities directly
- Conduct relevant due diligence, mentoring and preparation work
- Distribute through dedicated sales personnel supported by the consultation of commercial databases
Two points of differentiation:
"The best deal is the deal that gets done."
We start by having regard for who will invest in the opportunity and structure the deal and build the story accordingly.
"Treat a private capital raise like an IPO"
We work hard at preparation to ensure that all bases are covered, enabling us to approach a large number of pre-qualified investors at the outset, which introduces a competitive element to the raise and often achieves an enhanced valuation.
Beauty is in the eyes of the Beholder
View your company from an investor's viewpoint. If you are seeking funding then we believe investors want to see:
- Strong management with aligned incentivisation
- A robust business plan, sound technology, IP protection and disruption
- Rigorous cost control
- Good Corporate Governance
- A workable Exit Plan
- A robust business plan, sound technology, IP protection and disruption
- Rigorous cost control
- Good Corporate Governance
- A workable Exit Plan
Sell the Benefits,not the Features
Investors want to know that you have something that customers want. If you have genuine demand for your product then financing your company just became easier.
What makes customers want your product?
Regardless of how good your technical attributes may be, it is not the features, it is the benefits
to the customer that those features deliver that create demand.
Help investors understand what benefits your product brings to your customers and they will back you.
Be Prepared
Always suppose that you only have one shot at your target. Whether it is an elevator pitch or a full blown presentation, know your audience and make what you say as relevant to them as possible. The best route to success is to be prepared; certain of what you are saying and to whom.
Investors speak for others' money, as well as their own, and they must be able to communicate your proposal to their investors with clarity and enthusiasm. Help them to help you by keeping it simple.
Know when you will be required to provide greater detail and be ready to share that in a manner which is understandable and uncomplicated.
You cannot over prepare for a pitch so practice, rehearse, revise and refine. Preparation time is not a luxury, it is essential.
Our Process
Based on years of experience we have developed an exhaustive methodology which maximises the chances of success
Preview
We meet with the management and get to understand the company, its competitors and markets in which it operates. If both sides agree, we move to a formal engagement process where we conduct due diligence and, from the outset, assess specific investors which we think would be interested in the opportunity and the structure which may encourage their involvement.
Review
We then examine valuation and proposed structure and review any areas of the business plan which may require attention before going public with the fundraise. This may include action to infill any specific gaps in the specialist coverage of the management team, adding credibility to the company’s thoughts on potential exit strategies or beefing-up corporate governance. At this stage, supporting documentation is produced (eg. an Information Memorandum).
Targeting
Through our own knowledge of the private capital markets, our experience of dealing with the participants and aided by interrogation of relevant commercial databases, we draw up a list of pre-qualified investors to approach.
Marketing
This list is then marketed to and a roadshow is organised where the management team meet prospective investors. A teaser document and investor presentation is needed for this exercise.
Closure
Thereafter we manage the follow-up and “bookbuild,” which is the process of confirming commitment and actually gathering in the funding.