Below is a summary of the services that SIBC Capital can offer to entrepreneurs. Services can be provided individually or as part of a total capitalisation package.
Before we can become involved in any capital creation project we must know exactly what the business is about. We would like your initial approach to us to be in the form of an executive summary of your business proposal. It can be in the form of a written document, a presentation or a link to a website which tells us exactly what you do or plan to do, where you are located and some indication of the market sector you are aiming for. Below are some pointers to help you prepare your summary document.
Describe your business in the most simple and straight forward way possible. State the amount of investment you need
Explain your value proposition to solve the problem. Highlight your Unique Selling Proposition to prove that you are the right company to solve the problem.
Who are your competitors and how long have they been in business.
Tell us your stage of development. What have you achieved so far.
Explain how the investment is to be utilised. Use a timeline to show how the capital investment will grow
What problem are you addressing and why does it exist? What makes your offering needed by the market?
Set out the size of the Business Opportunity
Explain if new competitors will face any barriers to market entry.
Define how your business will generate most of its revenues and when
Set out your team, their relevant experience, and how long they’ve worked together.
Based on our initial assessment SIBC will offer specific advice on how best to proceed. Our initial proposal may include provision of one or more of the following services. The actual facilities proposed will be dependent upon other factors and the stage you are currently at. It will also be dependent upon how well advanced you may be with your business plan and forward-looking financials.
SIBC operates in conjunction with clients or their professional advisors to restructure the client’s company and to develop an investment proposition that can be presented to a targeted group of private or institutional investors. Of course, in those cases where clients already have a fully detailed plan that we can work with, there will often be no need for any additional restructuring.
Where the client’s plans may be lacking in detail or incomplete our team can often bring a fresh perspective to the underlying project and make recommendations designed specifically to enhance the investment offering. We can also introduce innovative ways to build in a high degree of investor security without adversely affecting the profit potential of the investment.
The bottom line is that SIBC, through its range of services, bring added investment value to any business proposal, whilst ensuring minimal interference with the proposed project itself.
One of the major factors in assessing a business proposition is the value of the underlying company. For existing businesses with a track record, this is much simpler than for a start-up. For start-up situations, a valuation of the company’s future value can be assessed based on the growth projections in the business plan.
SIBC can prepare a valuation report that utilises all five of the primary valuation models used by investors worldwide. One of the most important features of a valuation report is that it can often highlight certain shortcomings in the underlying investment proposal or business model. Furthermore, the valuation can give a clear indication of what percentage of the company’s equity must be given up in order to attract the investment.
It’s not only the numbers that affect valuation. It also has a great deal to do with comparing projected performance to other companies operating in the same or similar industry sectors and the overall experience of the management team. SIBC valuations make these important comparisons by cross-checking projections against a database of over 10 million data points across a wide range of industry sectors and geographic locations.
Put simply, deal structuring is the type of agreement reached in financing an acquisition. In the case of equity investment, it will involve establishing the terms under which the proposed investment will be made, the amount and value of the equity acquisition and details of the planned exit route in the future.
For many entrepreneurs approaching investors directly, this facet of the transaction is often left to the investor. However, it can often be beneficial to prepare a deal structure that better reflects the needs of the underlying business and present it to the investor for final negotiation.
SIBC can be relied upon to prepare a deal structure that not only takes into account what investors are looking for, but also what is good for the founders of the company. Other factors that are taken into consideration are the possible establishment of Special Purpose Vehicles through which investment can be made and the tax implications for investors at the time of investment as well as at the point of exit.
Capital sourcing is, of course, the bottom-line activity that ultimately gets the investment funds companies are seeking. At SIBC Capital, we draw on our extensive network of private, institutional and family office investors and make approaches only to those investors whose investment criteria fits with the underlying proposition.
Although SIBC may participate directly into certain types of investment, we would still seek to create a syndicate of investors who would participate under the terms of a private placement. Private Placements differ from public offerings in so far that they are primarily aimed at professional or sophisticated investors. The disclosure requirements for private placements are set by securities legislation. However, the securities offered do not have to be registered in the same way as securities offered to the public.
SIBC can assist companies in preparing and placing effective investment proposals suitable for Private Placement. Furthermore, we ensure that every proposal is reinforced with the essential professional advisory services that give comfort to potential investors.