How Do You Encourage Investors to Invest In Your Deal?
Mergers And Acquisitions Newsletter™
Hey Legends!
Always remember an investor will only invest if he/she is satisfied with your vision and plans.
Before you contact any investors follow this 5 steps:
First Step:
Understanding what is the average asking price in the industry you are targeting.
Find a deal that is in the price range of what you are looking for or cheaper.
Add professionals on your board who understand the industry you are buying.
Second Step:
Build a data room.
Put together a summary of the deal you found. (called Teaser or one-pager).
Preliminary Due Diligence
Third Step:
Contact your lenders network to fully understand how much money you need to put as a down-payment and how much they will lend you, then you will know exactly how much money to ask the investors.
Fourth Step:
Approach investors via email (message template) schedule a call.
Share full data room - Information Memo
Set up terms for investors.
Fifth Step:
Deep Due Diligence
Apply for funding solutions (Lenders Network)
Start Drafting SPA
Closing the deal
Hope this helps to understand the entire process of onboarding investors.
Get the Investor Letter Template for Free HERE
Sebastian Amieva
Mergers And Acquisitions Newsletter™