Specialisation, Independence, commitment and result oriented relationship

Corporate Finance M&A

Searching for partners
and financing

Why IMAP Albia Capital

IMAP Albia Capital boasts extensive experience in similar processes, enabling us to successfully support the developer when a new partner joins by:

  • Quantifying the needs in line with the proposed objectives.
  • Identifying the partner’s profile in accordance with the characteristics of the project and the company.
  • Defining an outstanding project of great interest compared to other alternative investments.
  • Accompanying the developers during the project presentation and subsequent negotiation phases.
  • Closing the process of capturing new funds and consolidating the new shareholder structure.

Search for partners

Like other corporate transactions, partner searching is a complex process that requires careful planning.

In other words, it is a process in which a product will be offered to the market (The Project) with the aim of capturing financial resources to develop it, while competing with other projects that are also trying to attract the same funds. Financial resources are limited and the number of projects to be developed is high, so we must have an exceptional Project so that a third party can finance it with capital. An investor rejects an average of 50 projects for every one in which it invests.

Partner searching is one more component for developing and financing a project, where we have to plan which resources will have conventional bank financing, which ones will attract public or semi-public funding and what percentage of the project will be financed with the entry of a new partner, who can be either financial or industrial, although the project’s development phase and the developers’ objectives will establish what partner profile is sought in each project development phase.

busqueda-de-socios-financiacion-albia

Planning for searching for investors

An inappropriate planning for searching for investors or financing may jeopardise for the project’s development. Before starting the search, we must plan at least the following factors:

Quantifying
financing
needs
  • How much
  • How (phases)
  • What for
  • For how long
Defining
the investor profile
  • Project phase (initial, development, consolidation, etc.)
  • Investment amount
  • Role to be played by the investor
  • Percentage willing to be transferred
Preparing the company
for the round
  • Identify the main improvement points (where is the value, how is the company organised, information reliability, etc.)
  • Prioritise the actions to be performed based on the degree of importance, speed of implementation and cost.
  • Select the package of measures to be implemented.
  • Define the schedule and indicators for implementing the measures.
  • Implement the measures.
Defining
the project
  • Define the “product” that is sold.
  • Anticipate the problems that may arise during the process.
  • Avoid surprises.
  • Project value. Scalability.
  • Prepare the negotiations. Flexibility and inflexibility points.
  • Guarantees willing to be provided.

Once the process is planned, a complete Business Plan must be drafted as this will be the main document used to attract potential investors.

Business Plan

The Business Plan must transmit the project’s exceptional features and it must be prepared in a COMMERCIAL manner: it is not a Business Plan, but a SALES MEMORANDUM which must be specific and easy to understand, focusing on the business and not on the product or technology. It must have accurate information which can be cross-checked and, in short, it must generate enthusiasm so that people want to know more.

Another key factor when capturing a partner is its profile and interests. The project and its Business Plan will be fundamental for the partner; how the partner joins the project, how long they will stay on, what degree of involvement and commitment they will have in the company’s management and how they exit the project will be just as important or even more By definition, a financial partner is temporary and its exit must be planned or outlined before entering the company or project.

The project’s objectives, its developers and the new partner must be aligned; otherwise, it will be impossible for a financial partner to enter a project. This is why selecting the potential partner’s profile based on the project’s own profile and its developers is fundamental.

Bilbao
Cl Rodriguez Arias, 15 7º Izda.
48008 Bilbao
Tlf. +34 94 400 35 00

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Madrid
Paseo de la Castellana, 141
Pl. 19
Cuzco IV
28046 Madrid
Tlf. +34 91 749 80 64

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Interested in receiving more information, having a meeting, clarifying certain issues or contacting our team? Send us a request and we’ll get back to you as soon as possible.



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