Deal Execution Management
What is it?
It is a form of working closely with Clients to assist them in execution of deal processes, most commonly in the form of capital raising.
Key Features
- Choosing the right Financial Advisor. This involves not only choosing an Advisor based on the resources that they can provide but also based on performance as a broker. Financial Advisors help prepare startups and entrepreneurs with their first round of funding.
- Choosing the right vehicle. Both business owner and Financial Advisor need to have a meeting of the minds as to what the right investment vehicle is for the business and the appropriate investors for the specified investment vehicle.
- Roles and responsibilities. Roles, responsibilities, and obligations of each party, including level of involvement in strategic and operation decisions, should be discussed prior to the roadshow.
- Related party fees and transactions. Fees and transactions of the roadshow should be properly settled so that each party can assess whether there are any preferential treatments or conflicts of interest that may arise
- Exit mechanism. The goal of the exercise is to support the company of the business owner and show investors that they are ready to take their company to the next level. The Financial Advisors will also assist in looking for financial/strategic partners for the company’s growth.
Key Considerations
- Potential synergies
- Unlocking value
- Stronger financial position
- Defined commitment
- Can lead to long-term relationships
- Conflict in strategy
- Can slow down decision making
- Requires clear and detailed agreements