Equity raise

Capital raising is accompanied by the partial transfer of ownership, therefore in many respects we perform tasks on behalf of the existing owner that fit into the process of the sale of the company. At the same time, some potential investors are specifically looking for target companies in which, by raising capital, they can not only acquire a valuable stake, but also gain a valuable partnership.

From this perspective, the steps of a company acquisition come to the fore. Whether raising capital on behalf of an existing owner or an investor, it is definitely an extremely exciting area of our services, similar in many ways to marriage:

• During capital raising, the owner does not leave the company, but the ownership structure expands and a new ownership community is created. It is key for each party to find a partner who has the trust, with whom they can imagine a common future, who they can support in trouble if needed, and with whom they are happy to share the fruits of the relationship. We effectively recognize the expectations of our partners, explore potential synergies in various investor relationships and help select the right partner.
• In some cases, even before capital is raised, relationships are alive that are built on complete trust - love at first sight. However, we are careful, we consider it expedient that before marriage the partners get to know each other better, have a cooperation for a while and the trust between them gradually strengthens. We also support the conclusion of marriage contracts in the form of a syndicate contract. It is not possible to regulate the cooperation of the parties in all respects, but important corporate governance issues and forms of ownership can be agreed in advance.
• Capital raisings are marriages that usually end in divorce. It is good if this is done in a planned, peaceful way, to everyone’s satisfaction, as it means that the capital raising has achieved its goal and the investors have achieved a fair return. Therefore, we recommend that we pre-define exit strategies and return expectations.
• A bad marriage is full of quarrels, just as a deteriorating system of ownership is full of conflicting situations. In such a situation, we will try to find a common voice between the parties and will do our utmost to maintain cooperation until a lasting solution is found. We keep in mind that it is in the fundamental interest of all parties to keep the crisis of the ownership community to a minimum in the company.
• Our own work is also based on trust, so our partners often do not count on us just as experts. If we think a transaction is worthwhile, we are ready to make a commitment to our partners with capital. Can you offer more than that?

Contact: Gábor Ézsöl gabor.ezsol@bdo.hu