On Your Own
- Target level of debt needed
- Determine appropriate finance type
- Establish financing objectives
- Figure out what players are in the market
- Determine who to contact given your company's equity, cash level, industry, technology, management team, VC syndicate, etc.
- Execute NDAs with targeted leaders
- Determine which documents they need in order to draft a proposal
- Send business/financial package
- Answer all lender questions, elaborate on business model and financial projections
- Multiple meetings/conference calls with each lender identified
- Evaluate and analyze all qualitative and quantitative aspects of each proposal
- Compare terms and structures on an apples-to-apples basis
- Learn what terms and structures are competitive in today's market
- Use knowledge of market to negotiate with lenders
- Understand how, when and where to push back on lenders
- Obtain references from each lender to determine which one is most reputable
- Research lenders to evaluate prior deals that each has done so that you are aware of their process
- Choose proposal that best fits your company's financing objectives
- Present analysis and due diligence
- Sign term sheet based on BOD's approval
- Proceed through due diligence and documentation process
|
Partnering with DAG
- Establish financing objectives with the help of DAG
- Execute NDA with DAG and send business/financial package
- Execute NDAs with lenders
- Typically have one brief conference call with each lender
- Sign term sheet and proceed through due diligence and documentation process
- Present prepared package to board
|
