Raise Capital Northeast Capital Alliance

Mergers, Acquisitions and Divestitures | Raise Capital | Business Valuation+ Assessment^SM

Raise Capital… at what cost?

There are many different capital sources to consider for different purposes, including: debt, equity, working capital financing, etc. Each comes with its own cost. The wrong capital structure can constrain operating decisions and limit your ability to make alternative investments after money is raised. Non-monetary components also impact a business’ performance. For example: if you partner with the wrong funding source, you may constrain your independence and control; furthermore, you can raise the wrong amount of money which can limit your future decisions.

Some questions to consider when raising capital:

How much money should be raised?
How much of the pie should be given away?
Who’s the best funding partner?
How should the money be utilized?
How do you manage the investor’s ROI?

The old model: You may of heard of – or worse, experienced – this common story. General advisors provide the management team a list of names to contact as ‘good’ funding sources. The management team contacts each funding source to identify interested parties who will listen to their story. After many exhaustive presentations, the team may be lucky to close a first round of funding over a period of months… at what cost?

Some risks when raising capital include:

How do you know whether you’ve partnered with the right funding source?
What commitments did the management team agree to when representing their business?
If the first round has been consumed but the investor’s ROI has not been achieved, how do you obtain additional funding?
What happens after the completion of a definitive agreement?
What happened to the business’ performance while the management team focused on raising capital?

Northeast Capital Alliance utilizes its proprietary capital-sourcing framework^SM to bring management teams through a systematic, step-by-step process to manage each step and the associated risks in the process. We utilize a comprehensive disciplined tool set to generate value-based outcomes at each major gate in the system. It helps management teams seeking to raise capital:

Identify a qualified funding partner that fits, beyond just providing the capital
Structure a fair and equitable agreement for funding
Fund the ‘right amount’ of capital at this stage
Manage the cost of capital
Account for post-closing issues to avoid constraints on value creation and re-investment opportunities

Our capital sourcing framework^SM connects the right funding for your needs. You remain focused on your core business so performance does not degrade.