Through
our national network, Managers & Directors is able to assist small to
medium sized enterprises (SME) in various ways to access external capital,
including private and public equity placement and debt finance.
Raising of capital requires
careful assessment of many factors including; the amount to be raised, the
reasons for the raising and the form the finance may take. A business
owner may seek capital for succession reasons; a board may desire access
to finance to fund growth; or a Management Buy Out Team may require a
financial backer for their takeover plans. In all of these scenarios,
there will be a range of
funding options available, including:
·
Debt (such as banks
and other lending institutions);
·
Private equity (from
individuals and venture capitalist funds etc.); and
·
Public funds (through
listing an Initial Public Offering (IPO) on a Stock Exchange).
Keys
for Successful Capital Raising
Regardless of the funding
option employed,
certain preparations are essential prior to raising capital. Keys to
success in your endeavor include:
·
The
development of a carefully considered and lucid business proposition –
including how, when and why the capital is to be raised;
·
The
involvement of a high quality, senior management team and appropriate
advisors;
·
Robust
and reliable financial and management reporting and forecasting systems;
·
Superior
business performance in your operational sector;
·
An
embedded and active corporate governance culture; and
·
Assessment
and addressing of the needs for all stakeholders e.g., positioning the
business for growth or providing an exit strategy for shareholders
Private Equity
During periods of strong growth, enterprises often believe they can
create wealth simply by targeting the right sectors, by having the right
strategy, or by adding operational value to a company. In the longer term
the quality of management, the board and the external advisors are what
will consistently drive superior returns to all stakeholders.
The experience, advice, knowledge and impartiality offered by Managers
& Directors will enhance the building of a solid foundation for all
equity and debt capital raising. Our advisors come from blue-chip,
multi-national corporations with up to billion dollar turnovers.
Therefore, the size of the capital raising task and assistance in building
the management skills required pose no concerns.
Managers & Directors may benefit your management team by:
·
Helping
to identify the challenges of raising capital;
·
Providing
valuable insights into the fund raising process;
·
Structuring
the relationship with an equity provider;
·
Explaining
how venture capital works;
·
Coaching
in the approach to, and engagement of, appropriate venture capitalist
funds;
·
Developing
and fostering the relationship between a business owner and venture
capitalists; and
·
Assisting
in the negotiation process to ensure the most appropriate structures are
implemented in the most timely and cost effective way.
Whether the
structure involves a large capital expenditure, acquisition, or exit
decision, it needs to be rational, fair, and based on reliable
information. The knowledge and experience of Managers &
Directors in such matters
will be invaluable to support the building
of strong business relationships with debt and/or capital providers
founded on experience, understanding of your business, mutual trust and
respect.
Stock Exchange Listing
Recent developments at the National Stock Exchange (NSX) have opened
the door for regional SMEs to fast track their growth through listing on
the NSX by way of an IPO. The NSX operates exchanges in regional centres
around Australia including Bendigo, Wollongong, the Sunshine Coast, the
Gold Coast and with Geelong soon to follow.
Listing on the NSX offers SMEs significant benefits including:
·
Greater access to capital in support of business growth;
·
Placing an objective market value on the company;
·
Lower costs and eligibility requirements than for listing on
the ASX;
·
Providing a succession plan for the company founders; and
·
Improving investor confidence through company involvement in
a regulated exchange.
The calibre of individuals in our network, our experience and
professionalism are the reasons Managers & Directors was approved by
the NSX (30 November 2007) as a national Nominated Advisor (NOMAD) to the
NSX. Under NSX rules a NOMAD must be appointed to assist and guide a
business with its listing and ongoing compliance. We are pleased to offer
listing experts at each regional exchange, as well as all Australian
states.
Like more information?
Managers & Directors can provide you with Executive Advisors from
our network of high profile experienced associates, and are your ideal
partner to assist in taking you down the IPO path.
If you are
interested in discussing capital raising for your organisation, contact
us today and speak with one of the Managers & Directors team
.
email: capital@managers-directors.com.au
phone: 1300 725 820
