Effective Fundraising and M&A: What Every Business Needs to Know

Effective Fundraising and M&A: What Every Business Needs to Know

The world of fundraising and M&A is often clouded by myths that can obscure the truth and hinder success. Here’s a straightforward take on these critical business endeavors.

Myth #1: Every Business Structure And Financial Instrument Is Suited For Fundraising

The notion that every business structure and financial instrument is universally suited for fundraising is inaccurate. The truth is choosing the right business structure and financial instrument when looking to raise funds is essential. If your company is already on the stock market, you’re in a good position to issue more shares to investors. For those not yet public but planning an IPO or RTO, you can attract investors with the promise of an exit event, which is the IPO or RTO,  in the near future. And if you’re into tech and blockchain, issuing security tokens could be a smart move, reaching investors all over the world.

Keep in mind that the business structure you select should not only align with your fundraising objectives but also adhere to legal regulations. Ensuring this alignment is crucial for laying the groundwork for a successful capital-raising initiative.

Myth #2: The More Information Contained in the Investor Presentation The Better

Contrary to popular belief, more information doesn’t equate to a better investor presentation. The truth is simple: investors are busy. They don’t have time to wade through a 30-page presentation. A concise, 10-page deck that gets to the heart of your value proposition is not just appreciated—it’s necessary. Crafting such a focused and compelling presentation demands considerable effort—often more than what goes into a longer one, but it’s worth it. The goal is to deliver a simple and impactful pitch that captures and retains investor interest.

Myth #3: Great Ideas Will Attract Investments

Without a solid business, management, and commercialization plan, you’re just another company in the crowd. It’s not enough to have a good idea; you need a clear roadmap that demonstrates how you’ll turn that idea into a profitable venture. This isn’t about buzzwords—it’s about building a real, actionable strategy that will attract investors.

Myth #4: Investors Are Generally the Same

The assumption that investors are generally the same is a common misconception. A critical step in fundraising is to know the types of investors that align with your business goals and when to approach them. Experienced M&A advisors often provide guidance and channels on how to engage with various types of investors, such as cash rich listed companies, family offices, venture capital, or private equity. Effective fundraising involves a structured approach that addresses the specific interests and requirements of prospective investors. A good M&A advisor should help you tailor your approach to catch the right investor’s eye.

Myth #5: Deal Execution Is Easy

When it comes to the foundations of deals—term sheets, legal documents, due diligence etc.—you can’t afford to learn by trial and error. You have only ONE chance and it is vital to get it right the first time. You need to engage a team who know the ins and outs and can guide you through this critical phase efficiently and effectively.

The Bottom Line: Expertise Matters

Whether you’re raising funds or selling your business, the challenges are significant, and the stakes are high. This is where seasoned M&A professionals earn their keep. Partnering with the right M&A team can make all the difference.

Reach out to us to ensure your financial journey is a successful one. With Pelican, you’re not just hiring advisors; you’re adding proven success to your team.

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Effective Fundraising and M&A: What Every Business Needs to Know
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