How We Work
From initial contact through to raising funds we carefully manage the process every step of the way to ensure the best outcome for each stakeholder is achieved. There are typically five stages in the funding and investment process.
This is completed by our local partners based upon a review of the business plan and initial meetings with company management. Our local partners will give a frank assessment of the potential for raising funds based upon the value creation potential of the business, security of the underlying assets, strength of management, and quality of governance and control. In some cases, it will not be appropriate to proceed further and we will provide quick feedback, always giving our reasons why.
If there is a willingness to proceed further, both parties will sign a letter of engagement, which sets out the funding requirements, outlines the process and timetable, estimates the costs including basis of remuneration for FinKap, and establishes conditions for early termination of the agreement by either party.
Some companies have ticked all the boxes and are ready to proceed with applications for funding straightaway, but many are not - business plans may lack sufficient depth and clarity, management information is rudimentary, financial controls are poor; there are weaknesses in key management positions, particularly within finance. All of this will set alarm bells ringing with potential financiers.
Our local partners work with management of a period of weeks, sometimes months to redress these. Business plans are rewritten, Robust cash flow and financial forecasts are prepared, monthly management reporting is introduced, key management and non-executive director posts are filled.
At the end of this stage, whilst there remains room for further improvement, you can be confident of being able to raise the funds you need to grow your business. Investors and financiers will also be confident that their funds are likely to generate a good return and are kept in safe hands.
During the preparation phase there may be a need for interim funding to meet day-to-day operating requirements and to cover legal and professional fees associated with refinancing which we can arrange or provide.
We will recommend the best combination of financing to optimise your value creation potential. Depending upon the needs of the business, we may approach a number of different financiers and capital providers for tailored products, both from local and international sources.
We will support you through the execution process, including coordination od due dilligence, negotiating terms and conditions of funding and overseeing completion of documentation.
Once funding is in place, our local partners will typically take up posts as non-executive directors. Their role is to provide strategic challenge and advice to the Board, monitor performance against value creation targets and to ensure compliance with external reporting requirements and internal control policies.