We get a constant stream of inquiries from entrepreneurs and businessmen looking for debt or equity capital, many of them with good ideas and great promise. A lot of these people want us to commit our time and resources on an “if come” basis, meaning that we raise capital on their behalf, using their financing profile and business plans, in return for back-end “success fees” and – in some instances – equity in their company. In most cases, the reward is not commensurate with the resources we would have to dedicate to the assignment to complete it properly. We do not work solely as a broker, so we decline those opportunities. We do not accept assignments where we cannot participate in creating, or offer objective advice on, the business plan, financial projections, strategic plan and other essential components of the financing information package. We must also must have a primary role in preparation and development of the financing search program, and we do not work exclusively for success fees ….. ever!
At Canova Bancorp we believe in making full disclosure to all prospective financing sources on behalf of our clients. Similarly we make the same full disclosure to our prospective clients, as to how we operate, before we accept an assignment.
There are many investment agents or finance consultants that claim that they can access financing from their “dedicated network of proven lenders and investors”, and they request money up front do so. However most of these agents act solely as brokers, offering little or no consulting advice and making no meaningful contribution to your financing proposal. They simply distribute an information package created by you, to as many potential financing sources as they can without regard as to whether or not the recipient is a legitimate prospect, or whether the package contains the ingredients that are required to promote success. Essentially the up-front payment is in fact a success fee that is not earned…. and is never earned! Most sophisticated institutional financers do not look at “over the transom” financing requests, so the proper approach must be made to ensure that you get any consideration.
Canova Bancorp fees for service represent our standard charges for the comprehensive corporate finance consulting process that we engage in, for the detailed financing preparation process that we undertake, and for the representation that we provide to you through the entire financing search. We make it possible for you to undertake an exhaustive search without diverting your attention from the vital elements of running your company.
Our consulting fees are not up-front ‘success’ fees for the obtaining the financing being sought. Our ‘success’ fees are all performance -based and do not require any advance payment. We offer financing acquisition services during our original consultation with you, but they only begin once the consulting and preparation process is complete. Financing acquisition services include identifying and qualifying prospective financing sources, making the initial presentation to these prospective sources on your behalf, making any follow-up presentations, assisting you with all negotiations, and working for you through the due diligence and closing periods. Because the financing acquisition process is a numbers game, it is vitally important that you be able to place your company and your vision in front of as many legitimate potential financing sources as possible – in the appropriate manner. Our consulting process is comprehensive and gives you the necessary tools for the financing search. Our search process exponentially increases your exposure to qualified financing sources because we reach hundreds of of them annually.
Most financers make their decision within the first few minutes of viewing a presentation. It is important for you to maximize the effectiveness of your package, and emphasize the value and potential of your company with a powerful presentation.
You can only make a first impression once. A good one will get you the financing you need!