Insights of a Maverick Investment Banker_Sample
Many successful entrepreneurs start with no or minimal capital. Some due to lack of financing, others to manage risk. Better to double up as experience grows, than go bankrupt before the business finds its path to success and scalability. Visit Us:- https://entrepcoaches.com/
Many successful entrepreneurs start with no or minimal capital. Some due to lack of financing, others to manage risk. Better to double up as experience grows, than go bankrupt before the business finds its path to success and scalability.
Visit Us:- https://entrepcoaches.com/
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BUYER HUNTING<br />
coach operator to hedge itself against the risk <strong>of</strong> terrorist attacks,<br />
which may divert air travelers to roads. Such tie-ups could also<br />
allow the cross-selling <strong>of</strong> services to both buyer and target.<br />
Clients <strong>of</strong>ten treat financial buyers with skepticism, but these<br />
days private equity funds and family <strong>of</strong>fices manage more money<br />
in America than the combined capitalization <strong>of</strong> public<br />
companies, so they should not be ignored.<br />
Financial investors <strong>of</strong>ten show more interest and bid higher<br />
than strategics. Funds are under pressure to invest and they will<br />
buy anything that can be fixed, grown, leveraged or consolidated<br />
and has solid cash flows.<br />
Even when they do not outbid trade buyers, their presence<br />
will allow the seller to increase bidding pressure and achieve a<br />
higher sale price than with marketing to strategics alone.<br />
While strategic buyers are <strong>of</strong>ten focused on buying market<br />
share and have narrow prospectives regarding the growth<br />
potential <strong>of</strong> a target, financial investors tend to be open to ideas<br />
on how to grow the business. Advisors add value by helping to<br />
draw up an ambitious vision for the buyer and enlist outside-, or<br />
prop up inside-management teams to sell it as their own.<br />
Private equity funds will also consider companies with<br />
limited organic growth potential, provided they can be used as a<br />
platform for a roll-up <strong>of</strong> similar companies, have a business<br />
model that can be exported, and solid leverageable cash flows.<br />
Investor Universe<br />
The next step is to use the investment pr<strong>of</strong>iles created to<br />
uncover matching potential investors. The source <strong>of</strong> such buyers<br />
may include, but would not be limited to, the following options:<br />
<strong>Banker</strong> contacts, past acquirers, databases <strong>of</strong> US, European<br />
and Asian strategic investors and specialist private equity funds,<br />
listed companies, players found in industry research and news<br />
archives.<br />
There are also subscription-based “dating platforms” for<br />
company sellers and buyers, such as Axial.net, which allow the<br />
sellers’ advisors to selectively and gradually reveal information to<br />
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