Start Up Equity

The situation

A highly specialized proven manager and a core group of his staff saw a novel approach to start a new business. It would require money to attract the right professionals and time to generate cash flow. The expected financial returns were compelling. He needed start-up funds.

Our professionals were hired to help structure and raise the start-up capital.

How our professionals helped

Our professionals rapidly helped structure and form a new entity to be capitalized with earnest management team funds and a private placement of preferred equity securities. Our professionals rewrote the business plan, restructured the financial projections and our professionals designed the preferred securities. Our professionals then worked with legal counsel to prepare the private placement documents. Importantly, since the placement was targeted at accredited individual investors, our professionals also prepared extensive due diligence materials and back up for their easy reference and review.

Our professionals began the private placement offering within 90 days of our initial meeting with the client.

The result

Our professionals successfully completed the Regulation-D equity private placement for the company.

In less than 18 months the company was able to repurchase 100% of the privately placed securities at an attractive return to the investors. A consortium of institutions provided leveraged financing to fund the company to the next level.