Impact the Capital Raise™ Process

The process of preparing you for the capital markets involves significant input from the you under the direction of Impact. The business model – as presented in the business plan – must be the product of the your management team. Impact serves only to guide the process of development and prepare the various documents. The process is as follows:

Readiness Assessment

Impact uses a Request for Information” questionnaire to obtain the information required to understand your business model, build the financial model, draft the funding request, and prepare the investor presentation. This document also serves to begin preparing you for the due diligence review of your company that sophisticated investors will conduct.

Based on Impact’s review of the questionnaire, we will prioritize the sources of revenue for the market analysis and identify the competition.

Market Analysis

It is imperative that you possess a detailed market analysis that identifies your customers, major competitors, and distribution channels. The market analysis must also address the reason why customers will buy your product or service over the competition (what is the value proposition?) If you do not have a market analysis, Impact can help prepare one.

Financial Model

If you do not have a financial model, Impact can help prepare one. The process of building the revenue and financial model for your company starts by identifying the key assumptions that drive your business. Impact will guide you through the process of identifying assumptions for the following:

• Sales Growth
• Revenue
• Cost of Goods and Services
• Operating Expenses
• Staffing Formulas and Compensation

Once you have tested the key assumptions, Impact will build your financial model.

The output from the financial model is a set of financial projections for five years. The revenue and gross profit margins are presented by source of revenue. This is the preferred format used by institutional investors. The financial model will also calculate your capital needs by type – equity and debt – and determine the use of proceeds.

Business Plan

Impact will use the materials provided by the company, market analysis, and financial model to prepare a business plan. The business plan will include the following sections:

• Executive Summary
• Company Overview
• Vision/Mission Statements
• Company Organization (Management, Board of Directors, Advisory Board, Professional Support, and Principal Shareholders)
• Strategic Marketing Direction
• Proposed Financing
• Key Risk Factors
• Prospective Financial Statements
• Supporting Documents

Funding Request

The funding request (also known as a 10-point) serves to provide institutional investors (equity and debt) with the information they require to determine investment quality and answers the following basic questions:

• Capital Need – What capital (equity and debt) is required to implement your growth strategy?
• Business Description – What is your business model?
• Use of Funds – How will you use the funds provided?
• Exit Strategy – If equity capital is invested, how will the investor exit and receive the expected return on investment?
• Assets Available as Collateral – If money is loaned to your company, what security does the lender receive?
• Ownership – Who owns the company, how much have they invested, what percentage do they own? What is the expected internal rate of return for an equity investment?
• Key Contact – Who does the investor contact if interested in pursuing the opportunity?
• Key Employees – Who is protecting the investment?
• Outside Support – Who are your attorneys, accountants, consultants, and other professionals that support your business?
• Unusual or Sensitive Information – Is there anything an investor should know that could effect their investment decision? Note: Sophisticated investors will conduct a thorough due diligence. This is the place to disclose any “skeletons in the closet.”

The funding request should be no longer than five pages.

Business Summary

This 1-2 page document succinctly describes your company and provides prospective investors with the information they require to whet their appetite and take the next step in analyzing the opportunity.

Investor Presentation

All investors seek answers to seven basic questions. The investor presentation must answer the following questions:

• What do you sell?
• How do you make money selling your product or service, in other words, what is your business model?
• Who is your customer and how big is the market for your product or service?
• What do you want from me; and what’s in it for me?
• How do you market your product or service?
• Who is your competition and how substantial are they?
• Who is protecting my investment?

Private Placement Memorandum

Your attorneys will review the presentation materials discussed above and suggest any required changes. They will use these materials to prepare the appropriate offering documents.

Let us provide you with a plan to access the capital you need for your business. Get Started Today!


donavon@impactbusinessaccelerators.com

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Impact Business Accelerators, LLC
3728 E. Highland Avenue
Phoenix, AZ 85018

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