Capital raising

When it comes to capital raising, we use a "Three Pillar Approach" to help our clients obtain the finance they are looking for:

1. Financial business planning

The typical business plan which Wellers would help build takes at least a five-year forecast view on any business, and would incorporate:

• A summary of key financial indicators and ratios from the business plan forecasting, and the required minimum financing to see it succeed – which a financier would typically want to look at
• A detailed set of stress-tested forecast financials – income statement, balance sheet, cash flow analysis
• Detailed data inputs to forecast financials, verified against a reliable source and discussed with an industry specific expert to ensure robustness

2. Governance Business Planning

The non-financial aspects of the business plan would incorporate the following, ensuring they are well documented, rehearsed and embedded:

• A clear ownership, governance and shareholding structure
• Policies, procedures and controls to manage the business
• Regulatory and legal considerations which impact the business
• Covenants and securitisation arrangements which may be needed

3. Capital Raising & Financing

The capital raising exercise which Wellers would carry out with a client, once a business plan is in place, incorporates:

The first step - drawing up an Information Memorandum for marketing to financiers

• This involves summarising the business principles, the business story and who the key entrepreneurs or founders are
• It also involves summarising the key components of the business plan into bite-sized marketing chunks
• Finally, it involves rigorously checking all statements and assumptions made to ensure that the Information Memorandum adheres to regulatory requirements on marketing

The second step – through Wellers’ significant client list, arranging appropriate introductions to potential financiers and investors, and helping manage the due diligence process for clients.

For a discussion about building out a thorough business plan, please contact Guy Ruddle by phone 020 7481 2422 or by email with guy.ruddle@wellerslawgroup.com