Considering including a capital raising consultant in decisions regarding your company? If so, it may be your first and best decision of all. In the following, we’ll look at the parameters within which a capital raising consultant works, the results of their services, and how the solutions found with your consultant can move the trajectory of your company toward growth, change or reconstruction success. What you can be sure of, as you consider the bottom line, is that a capital raising consultant will raise the bar for your company every time.
The Structure of Capital Raising with a Consultant
Capital raising is exactly as it sounds; however, the process is far more complex and somewhat depends on the choices of the capital raising consultant after examining the company in question. The lack of capital is frustrating and defeating for business leaders. You may have a winning team and an extraordinary product, but you cannot pursue your vision without the amount of funding needed to bring the product to market. Raising capital is a consideration that can provide the solution, and it can be completed in a number of different ways, such as:
- Acquiring equity or debt capital
- Executing a business sale
- Engaging in acquisition or divestiture
- Fundraising through accelerators or incubators
- Fundraising through crowdfunding
- Fundraising through angel investors
- Fundraising through venture capitalists
These methods or hybrids thereof, can be combined or offered in a number of configurations, which adds to the discernment capabilities that a capital raising consultant brings to a client company.
The methodology used by a capital raising consultant is driven by the purpose of this position: to primarily search for and chart the best opportunities to raise funds and, secondarily, to provide all necessary materials and investor candidates to procure those funds. The process includes data research, data collection, past and present performance research, performance forecasting, financial plans and financial forecasting, presentation planning and executive support throughout the process. The process may take a few months or longer, depending on the complexity of the challenges and purpose of the company.
The Results of Capital Raising with a Consultant
It probably goes without saying that attempting to raise capital without a knowledgeable partner in the effort unnecessarily complicates every step of the way and can foil any attempts to get the capital raised. This is not to say it isn’t impossible to proceed without a consultant. When an executive suggests the process is completed in-house to save the cost of hiring a consultant, it sounds very reasonable.
There are two salient reasons why attempts made in-house to raise capital most often fail. First, every executive in a startup, growth mode, or company in need of reorganization, is busy as a result of the evolution-in-process. None typically have the daily hours available to spend researching, collecting data, and collating statements for an investor presentation. In fact, few ever succeed in the attempt. Second, every executive is tied with a degree of subjectivity to the company under discussion. It is difficult at best for an employee of a company to make the objective decisions that will change the trajectory of the company forever, particularly if it means allowing the company to be acquired or merged, reconstructed or placed under turnaround management. For these two reasons, an in-house effort to raise capital is not often successful to the extent that those of a capital raising consultant will be.
What are the results of employing the skills of a capital raising consultant?
In the capital raising world, the success of an offer to investors is backed by the agreement between the consultants and the client, which typically involves a percentage of funds raised. In other words, the consultants who provide the interested investors receive payment based on the total amount raised. This amounts to complex work for months by capital raising consultants that is dependent on the investors and it suggests: consultants are confident in the investors they provide, and they are confident in the outcomes and success rate of the presentation by company owners.
How does capital raising move the trajectory of your company toward growth, change or reconstruction success?
The answer is simple: As a result of capital raising, funding is provided to take your company where it needs to go. Using a capital raising consultant has been the catalyst for funding and the proven essential key toward a successful process and outcome. Capital raising consultants raise the bar every time.
