To meet their financial objectives, middle-market companies frequently require debt or equity financing. At TAQEEM, our duty is to completely understand your financing needs, explain all of your funding possibilities, develop a fundraising strategy, and then put it into action to assist you get the most cost-effective type of cash.
Our team has assisted several clients with Achieving Growth Strategies, Executing M&A Transactions, Providing Shareholder Liquidity, and Refinancing Costly Debt as a trusted partner who has helped recapitalize millions of dollars in debt and equity financing.
We keep an up-to-date list of institutional investors who can provide alternative financing in the form of common or preferred stock, senior or subordinated debt, and term or revolving credit. Private equity firms, family offices, senior/junior/mezzanine lenders, hedge funds, and commercial banks are among the funding partners.
Our value-add capital raising services mean we take a holistic approach when assisting our client’s achieve their financial goals, which entails a comprehensive and technology driven process typically involving:
No Pre-Revenue Startups
$10m min for equity
$20m min for debt
Revenue min of $10m
EBITDA min of $3m
Institutional Investment Focus
Private and public equity investment opportunities abound, particularly for developing and profitable businesses. For the right target business, private equity firms, family offices, and other sophisticated institutional investors can give a majority or minority capital interest. We assist both the issuer and the investor in obtaining mutually beneficial agreement conditions.
For clients seeking a solution for their corporate debt financing needs, we offer straight forward options for senior, subordinated, mezzanine, and other forms of asset-based loans. Most agreements, as is customary, comprise a combination of loan and stock. We work with lenders and issuers to help our clients get the optimal combination of both at the best available rates.
Corporate growth, recapitalizations, and acquisitions are frequently financed via mezzanine, venture, unitranche, and other subordinated loan structures. Non-dilutive financing is especially useful in balance sheet-light enterprises when the owners do not want to give up equity. We can help you find the perfect mix of non-bank, secondary, and tertiary debt to fund your company’s next stage of expansion.
Alternative capital structures are available to organizations looking for answers to their corporate funding problems. Debt and equity crowdfunding, cryptocurrency/tokens, and employee stock ownership plans (ESOPs) can all be integrated with debt and other specialized asset lease-back structures. We offer finance options across the value chain that lead to a substantial liquid exit.
We provide clients with a simple fee-structure for raising capital
A regular monthly engagement fee is included in our active capital raise client engagements. We do not accept huge retainers or commitments up front. Smaller monthly payments ensure that our goals are matched and that we are held accountable as we seek money from institutional investors.
The majority of our fees are based on performance. That is, we are paid after a transaction is completed. We take pride in designing fee arrangements that suit our objectives with our clients’. We engage with our clients throughout the capital requisition process to ensure that accountability is a top priority.
During the engagement, the customer is liable for any pre-approved out-of-pocket expenses and third party expenses. Pre-approved travel, management meeting expenses, and so forth are examples.
When a company tries to raise private financing, it faces a slew of issues. The quantity of money required, the industry in which the business works, the present economic situation, as well as legal and regulatory concerns must all be taken into account.
With so much to figure out, it’s critical to have a plan in place that can be applied during such private capital raising efforts. You’ve probably heard the phrase “don’t try to reinvent the wheel,” and that’s quite true when it comes to determining the best way to raise private cash. There are three well known routes to raising private capital for any business – the first is to consider the existing network.
There may be a chance to develop an internal investment where an employee with sufficient assets agrees to a percentage of the company in exchange for a significant investment. Similarly, creditors and suppliers may consider partnering with the company for diversification and growth.
Businesses should explore expanding their existing network as a second source of finance in any private capital raising effort. There may have been opportunities to merge with other businesses in the past that could be re-explored, or there may be a natural expansion of the business that would open up different avenues of capital, such as expanding into a different market before obtaining private capital offers from newly burgeoning markets that are rife with venture capital potential or other form of agreement.
Taking on marketing and getting individuals on board to help your business make the connection between the business and the potential private capital funds on offer is the third source of prospective finance. Using a placement agent to meet with prospective investors might be a terrific approach to expand your network. It’s critical to stay focused at this point on building any prospective investor ties that occur. Although both are significant factors, most investors want to know why the cash is needed more than where you expect your investment will lead the business. It is suggested that the company establish a social presence in order to communicate the fact that the company has been founded and that it is working with professionals who add value to the process and in whom an investment is a good idea.
If your company is fortunate enough to have a choice of private capital offers, it is critical to describe your ideal investor in these situations, as well as at each time a company seeks a private investor. You might already have someone in mind, such as a silent investor or someone who will be interested in the company and help it align with new or larger markets. Finding the right private funding, connecting with larger markets, and combining with other enterprises are all possibilities. This is why it is critical to thoroughly analyze your first and second possibilities, since they will already be the most familiar with your company’s operations and why it requires investment. In short, you won’t have to explain as much or sell your idea as effectively, which can be advantageous.
It’s critical to understand why your investor wants to provide your firm with private funding – any variety of reasons are appropriate – since it helps to define the partnership moving forward and ensures that there are no misunderstandings. To take full advantage of the possibility, the company must demonstrate that it is completely compliant in all areas: regulatory or tax implications must always be met in order to persuade any possible investor that investing in your company is a safe bet. Being able to define your business in the right terms will help gain interest, so bear a thought to how your business is being marketed and focus on the strengths.
Using modern methods for obtaining private financing also entails an emphasis on technology, online communication, and networking. Creating a business profile, maintaining a website, and writing a blog on related issues of interest to the firm will help the message spread and get ingrained in the minds of potential investors.
To summarize, if you’re thinking of raising private cash for your company, make sure you do it correctly. Take the time to construct the foundation, which has been demonstrated to produce stability and high brand recognition in the past. Take the time to clarify your business motivation and development possibility, but don’t forget to focus on the accounting part of what you’ll be offering the investor in exchange for his or her money. Any potential investor will want to see a plan of action for the use of the investment as well as any repayment or dividend offers that they will gain. Understanding the bottom line in all areas, both in where your business now stands as well as post investment projections will be a necessity, so it is better to have them ready before trying to find an investor.
Consider your alternatives for finding the ideal investor after you know you have a strong plan of action in place and that the business is fully compliant and wholly indicative of a sound investment choice. Keep in mind which type of investor you believe would be better suited to the opportunity. And keep in mind that this is a chance for someone – market your business and the benefits that any investor will obtain by being involved at this moment in time. Demonstrating that the company is well-positioned for future growth is a desirable scenario for investors, who do not look at investments like help to a business but rather as a way of earning money by simply being involved in the right opportunity.