In the first stage, the enterprise determines the cooperative relationship with financial consultants such as investment consulting companies, and the financial consultants formulate detailed and scientific business plans and company profiles, as well as financial forecasts and instructions on the use of raised funds.
In the second stage, the financial consultant arranges the enterprise to meet with the potential investors, and the potential investors do the preliminary due diligence.
In the third stage, the two sides negotiated the commercial terms and finally signed the main investment terms.
In the fourth stage, with the cooperation of lawyers and accountants, the financial consultant will preside over the drafting, negotiation and finalization of the investment agreement. After the investor completes the due diligence, all parties can sign the relevant investment legal documents.
After 1~4 weeks, the investor remitted the investment funds into the bank account of the enterprise, and the whole financing activity was completed.
In the above four stages, two or more financiers will have many different ideas and opinions on major issues such as enterprise valuation, investment ratio, investor priority protection clauses, corporate governance and management ownership, and other related issues. At this time, the role of financial advisers is very important.
On the one hand, financial consultants can provide professional advice to the company on the above issues, so as to maximize the company's interests. On the other hand, financial consultants can play their dominant position as a third party, mediate and coordinate the negotiations between two or more parties, control the pace of negotiations, and become a buffer between negotiating opponents, so that difficult and tense negotiations can be carried out more smoothly and the success rate of negotiations can be greatly improved.
We know that a successful financier needs strong writing skills, persuasiveness, affinity and endurance, but many business managers do not fully possess these skills. And financial advisers can make up for the lack of financiers' ability.
It is worth mentioning that a qualified financial adviser should not only have the most basic skills, but also have enough credit.
Financial adviser is to help enterprises find people who are willing to invest in them, so his credit problem also directly affects the image of enterprises and investors' trust in enterprises. Therefore, enterprises must carefully choose suitable financial advisers when carrying out financing activities.