Down Payment Investors for SMB Business Buyers: Mainshares – A Capital Raise Solution REPLAY [Video]

Down Payment Investors for SMB Business Buyers: Mainshares – A Capital Raise Solution REPLAY

Getting a meeting with Mainshares: www.Mainshares.com/r/jon

Summary

This webinar with Judd Goodrich from MainShares and Jon Stoddard covers topics related to SMB downpayment and capital raise solutions. The conversation begins with an introduction to MainShares and how it helps people buy businesses. The first chapter discusses what success looks like in an equity raise, emphasizing the importance of being an experienced operator, bringing a good deal, and offering an attractive investment opportunity. The second chapter explores the structuring of deals, including preferred participating equity and multiple on invested capital approaches. The third chapter focuses on engaging with investors, discussing the minimum equity requirement, the role of personal guarantees, and the importance of building relationships with investors. This conversation provides insights into engaging with investors and raising capital for acquisitions. The chapters cover topics such as building relationships with investors, understanding the acquisition process, setting expectations and building trust, preparing for investor conversations, navigating investor hesitations, coaching and support for investor calls, qualities that attract investors, being transparent about red flags, engaging strategic investors, closing the deal with investors, the process and timeline of raising capital, additional costs and due diligence, qualifying investors and private placements, equity allocation to investors, and mitigating risks in concentrated industries.

Takeaways

Success in an equity raise requires being an experienced operator, bringing a good deal, and offering an attractive investment opportunity.
Structuring deals often involves preferred participating equity and multiple on invested capital approaches.
Engaging with investors requires building relationships, demonstrating commitment, and understanding their expectations.
Raising capital for a business acquisition may require a minimum equity contribution and personal guarantees.

Chapters

00:00 Introduction to MainShares
05:03 Success in Equity Raise
19:00 Structuring Deals
35:16 Engaging with Investors
50:53 Building Relationships with Investors
51:50 Understanding the Acquisition Process
52:48 Setting Expectations and Building Trust
54:13 Preparing for Investor Conversations
55:36 Navigating Investor Hesitations
56:34 Coaching and Support for Investor Calls
57:54 Qualities that Attract Investors
58:52 Being Transparent about Red Flags
59:51 Engaging Strategic Investors
01:02:03 Closing the Deal with Investors
01:03:03 Raising Capital: Process and Timeline
01:08:21 Additional Costs and Due Diligence
01:13:35 Qualifying Investors and Private Placements
01:25:30 Equity Allocation to Investors
01:28:30 Closing Costs and Investor Due Diligence
01:34:17 Mitigating Risks in Concentrated Industries