Private Equity
In broad terms, raising private equity, whether the quantum is USD10m or more than USD500m, pre-IPO or early round finance, follows largely the same process and rests on the foundation of an effective and clearly articulated commercial strategy. From this strategy, and a study of the market to which it is applied, cash-flows can be inferred and, through financial modelling, a range of valuations derived from sensitivity analysis on the key inputs. This valuation exercise then forms the basis of negotiations with potential PE investors.
Prospect’s principals have considerable experience in working with management teams and business owners to refine and clarify their strategy.
We then typically work with the client company FD to create a cash-flow model which reflects the practical financial implications of the commercial strategy. Based on the resulting data we will produce a carefully crafted information memorandum and other pitching materials to put before prospective investors.
Our understanding of the PE investor universe and our existing relationships, including institutions, family offices and ultra-high-net-worth individuals enables us to shortlist investors who are appropriate to the sector and stage of the investee company and the size of the envisaged transaction. We will then approach investors on behalf of our clients, and solicit term sheets as well as managing any subsequent due diligence process, organising data rooms, coordinating meetings where necessary through to financial close.