At Tractus, we try to maximize the likelihood that our clients will achieve their financial and non-financial objectives by approaching the private placement in a disciplined, professional manner, and by controlling the process to the greatest extent possible.
Tractus believes that not only should our clients achieve their objectives, but they should do so as efficiently as possible, so that neither the client nor the potential investor wastes time. We therefore concentrate our initial efforts on an "internal" due diligence. By undertaking our own detailed due diligence, Tractus is able to develop a deep understanding of both the positive and negative elements of our clients' business. Since Tractus also understands investor needs, we are able to anticipate investor reactions. This comprehensive approach allows us to avoid surprises and minimize the additional work required for investor due diligence. We are therefore able to work with our clients to develop the strategy and documentation that will best help interest potential investors, place the business in the best light possible, and minimize the time between initial contact with the investor and closing .
Tractus works to add value to our clients throughout the process by:
- Preparing high quality professional investor materials including information memoranda, financial models, and investor presentations. We make your business look as professional as possible so that any investor we approach will take the investment offering seriously.
- Advising with respect to appropriate structure, valuation, and the terms and conditions of a transaction. The transaction structure and terms and conditions can have a tremendous impact on the perceived risk and potential returns on any deal. By understanding the needs of all parties involved and being creative, we are able to help structure deals so that both investors and our clients feel they have gotten a good deal on the transaction.
- Identifying, approaching, and negotiating with potential investors/lenders. Just like any marketing task, selling to potential investors or partners (a customer of the offering), is a business discipline and a shotgun approach seldom works. We work closely with our clients to establish their criteria for assessing potential investors and then work hard to identify and target those potential investors who offer the best match with our client objectives.
- Preparing appropriate documentation. Once investors are interested in your business, the real work begins. In conjunction with external legal counsel, Tractus assists in negotiating and preparing term sheets, memoranda of understanding (or letters of intent), share transfer agreements, shareholders agreements, and all other agreements and documentation required to complete a transaction.
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