Loan Financing For Your Business
Financing strategies for existing or new businesses may differ as much as the businesses themselves. Financing from the lender's point of view is all about risk management. We can help you in developing and documenting your financial strategy and future plans to convince a lender or other financier to meet your financial needs.
Team up with us and take advantage of our in-depth knowledge, skills and our relations within the banking sector to tailor solutions that are perfect for your situation. We can help you in preparing business plans and projections and also represent you in meetings with financial institutions.
You may sell partial ownership of your company in exchange for cash. The investors assume the risk of losing investment if the company fails, but if it succeeds, they typically earn higher returns on their investments. In other words, equity financing is far more expensive if your company is successful, but far less expensive if it isn't.
We can help you find such investors, who may invest for short or long term period. However, these investors will assume a higher risk than normal lenders and will typically be more involved in your company. We, therefore, prefer to choose the investor with better knowledge of your business and offer advice and connections to help you succeed.
We will also negotiate the terms of investment to better suit your business needs, as an early exit of the investor may cause serious cash flow issues.
Public Offerings Through Capital Pool Companies (CPC) & Shell Companies
CPC's are best suited for growth companies that need capital for expansion. A CPC is a public company that has been established for the sole purpose of acquiring an active business enterprise. it is regulated by the TMX Group and trades on the TSX Venture Exchange. This is considered a junior exchange to the Toronto Stock Exchange and once the CPC is listed, its shares can be bought and sold. The cost to become listed and to maintain on-going regulatory compliance on the TSX Venture Exchange is less than the TSX Exchange. A company can later move from the TSX Venture Exchange to the Toronto Stock Exchange.
Generally, these CPC's are formed by a minimum of three directors, who provide seed capital of $100 to $500 thousand. There are several existing CPC's in the process of finding qualifying transactions for acquiring target companies.
Once a suitable target company is identified by the CPC, and all approvals and documentation, including audited financial statements are completed, the CPC raises additional capital to complete the qualifying transaction. In essence, the target operating company exchanges its shares for the shares of the CPC and takes over management of the CPC.
Our professional experts can identify such CPC's for our clients who may intend to use this less costly route of going public and raising capital for meeting their growth targets. We can also assist during the whole process from negotiation to deal completion.
Our services will include:
Review your business operations, its shareholding structure, and assist in developing its current value
Identify a CPC and negotiate on your behalf to get the best possible deal
Develop a reverse takeover or merger plan, where your company shareholders will gain control of the CPC upon merger
Represent you in the meetings with lawyers, the CPC shareholders and regulatory authorities
Assist you in preparing all documentation, as required through the process
Develop a business plan for your post-merger operations
Streamline your accounting and reporting issues
Develop a post-merger protocol to comply with the regulatory requirements