Equity Financing

Equity funding from institutional and strategic investors

Financial investors, such as private equity or venture capital funds, buy company shares with the aim of obtaining high returns over a mid-term period of three to five years. The source of their return is, aside from dividends, their final profit on the sales of shares.

”With the support and experience of Capital One Advisers, we were able to successfully obtain an external financing plan, including taking the lead in closing the transaction with a strong capital partner international private equity fund. Specialists from Capital One Advisers also assisted us in a number of investment and financing decisions in completed projects”.
CEO, Vivid Games S.A.

Strategic investors, on the other hand, operate in the same, or similar, business fields to your own company. Their investment horizon is practically unlimited, as the business operations that they acquire become part of their capital group and belong to their long-term growth strategy. The benefits for strategic investors include economies of scale, access to new markets, acquisition of new distribution channels and increased turnover. Strategic investors almost always aim at ultimately gaining control over the company they invest in.

What is an adviser’s role?

As an adviser in the process of attracting a private equity/ venture capital investor, we will analyze a company’s economic and financial standing and define equity valuation. We will also define the mid-term shareholders’ strategy. We prepare all information materials and develop a list of potential financial institutions who will receive an investment proposal.

Then, we collect preliminary offers from potential investors and organize meetings between them and the company and its owners. Our next stage of assistance sees us involved in the preparation of a term sheet. We also co-ordinate the due diligence process and negotiate the final terms of the transaction until an investment agreement is signed.

We also provide support in the implementation of the final terms of a transaction by monitoring the fulfillment of the conditions which must be satisfied for the successful execution of the signed agreement. We also monitor the fulfillment of the objectives of a company’s business plan, financial model and budget.

As an adviser in the process of securing a strategic investor, we advise on the choice of a defined ownership strategy. We analyze a company’s economic and financial situation and provide its valuation. We also prepare information materials that comply with international standards. Throughout this process we will develop the selection criteria for potential investors, taking the Client’s preferences and the implementation of the chosen ownership strategy into account. We then present our Clients with a list of investors, both in Poland and abroad. Our task is to also present detailed information materials concerning the company and to organize and conduct meetings between interested investors and the company and its owners. The next stage is the preparation of a term sheet, which must then be approved by the Client company’s board and owners. These term sheets reflect the future conditions of an acquisition agreement, including the Client’s need for equity from an investor. We organize and lead the negotiation process, we advise on the due diligence process and supervise the preparation of a data room, which holds the key documents and materials to be examined by the potential strategic investor. We participate in the negotiation of the final terms of the transaction and supervise their implementation.

If you have any questions regarding our references please contact us at +48 508 111 974 or using this contact form..