RARE Partners - Transaction description


Typical Transaction Type

Venture capital – investments of up to $5m for new innovative start-ups
Expansion – investments in established businesses that require funds to enable growth and expansion into new markets or new products internally
Acquisition – investment in established businesses that require funds to enable growth and expansion into new markets or new products externally with real synergies
Exit – investment to replace existing shareholders or management

 

Typical Characteristics

A well conceived business plan and revenue model
Quality management
Products or services that are scalable both locally and internationally
Defined exit strategies for all owners

 

Typical Investment

Pre-money valuation of up to $25m
Investment of up to $5m with the ability of follow-on investment
Pre-defined milestones outlining use of funds and business plan
Strong Board compliance and participation
Active interim management in the early growth stages

Typical Funding Sources

Before any business seeks external capital the existing owners need to consider if the business is “investor ready”. By this we mean – does the business have the right structure, the right documentation and the right management in place to attract funding.

 

It is not enough to need funding, in a competitive financial landscape investors, whether they be from a traditional banks or a private investor, will need to understand the risk profile of any recipient so they can decide whether to proceed and at what price.

 

In order for a business to raise capital it should be "investor ready".  This allows funders and investors to quickly review the opportunity and asses it's worthiness against known risk criteria. Any business that is not investor ready is less likely to be successful in attracting capital or the cost of that capital maybe higher than need be.

 

Our Investor Ready service helps clients develop a suite of documents to enable an efficient and effective due diligence process. A typical due diligence documentation pack includes answers to the following:

 
• What does the company do?
• How does the company make money?
• Who is running the company?
• How the company has been valued?
• How do they invest?
• How do they safely exit their investments?

 

Furthermore we assist our clients by providing a unique mix of transaction / advisory services and long-term support post capital raise.

Cash flow using existing business transactions
Traditional asset backed bank funding
Non traditional debt funding
Borrowing from family or friends
Investment from suppliers or customers
Private Equity capital raise
Public Equity capital raise