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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INSIGHTS OF A MAVERICK INVESTMENT BANKER<br />
Buyer Hunting<br />
“Investors... Where to Find Them?”<br />
This has been the most common question I received over the<br />
years from prospective clients. An obvious inquiry, but one hard<br />
to give a brief answer to. Therefore, here is the long answer I<br />
would give if there was ever time to explain this topic in person.<br />
Understand the Business<br />
8<br />
Stalking investors is a complex and multi-stage process. The<br />
first step is to understand the business: Who will benefit from<br />
buying the company? The more specialized its activity, the fewer<br />
will be the potential investors.<br />
How sustainable is the underlying business? To answer this,<br />
study the company, its markets and competitors. What drives<br />
growth? Where is the market going? How will investors make<br />
money tomorrow? Do you need new ideas or a new management<br />
team to make the target more attractive?<br />
Let’s take the example <strong>of</strong> a leasing s<strong>of</strong>tware developer. This<br />
company could be interesting for the following buyer types:<br />
• Diversified s<strong>of</strong>tware companies aiming to break into the<br />
leasing s<strong>of</strong>tware market;<br />
• Hardware distributors seeking to sell products to financial<br />
institutions;<br />
• Debt collection agencies supporting the leasing customers <strong>of</strong><br />
the s<strong>of</strong>tware developer;<br />
• Banking-s<strong>of</strong>tware companies looking to plug holes in their<br />
product portfolios;
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