External support is sometimes needed in order to grow or to continue operating. Entrepreneurs want risk capital because they can no longer rely on the bank, or because they are looking for the complementary know-how, the expertise, and the network of an external partner. This usually involves an accomplished entrepreneur who is looking for a return on invested capital, and seeks to help other businesses to grow. In exchange, the investor wants a stake in the company by buying shares from the director and majority shareholder (DMS) of a business through an equity issue.
There are various types of investors, each with their own investment criteria, preferences, and investment propositions. This demands a tailored approach. However, one thing will always remain consistent: namely, an entrepreneur who continues with a new party by his side, and whose return depends in full or in part on the company’s success. Therefore, the match needs to be optimal, and both parties must fully understand and respect each other.
What does Diligence do?
Our services comprise:
mapping the company´s investment needs, usually in a business plan ((Diligence can help to draw one up)
in cooperation with the DMS, determining the profile of the ideal investor;
searching for, approaching, and selecting the most appropriate investors with the best propositions;
putting them in touch with the company’s DMS/DMSs;
negotiating to arrive at the most favourable investment proposition;
offering support in establishing agreements.
After the transaction has been concluded, we will supervise optimal cooperation. If something should go wrong, we will be there to help resolve any issues.
We charge an hourly rate or a fixed contract price in combination with a success fee relating to the capital invested through our organisation’s mediation.