Roadshow
What is it?
A platform that connects companies with current and prospective investors. This service is a non-transaction road show with an intention to stay in touch with current investors and meet prospective investors.
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 kind of investors that are looking for that 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 roadshow is to showcase the company of the business owner and show investors that they are ready to take their company to the next level and that they are looking for strategic and/or financial investors for the company’s growth.
Key Considerations
- Potential synergies
- Unlocking value
- Access to more resources
- Stronger financial position
- Defined commitment
- Can lead to long-term relationships
- Potential clash in corporate culture
- Conflict in strategy
- Can slow down decision making
- Potential inequity in contribution of resources
- Requires clear and detailed agreements