Matching finance to specific corporate requirements
Venture Capital Private Equity Mezzanine Finance Senior Debt Working Capital Finance
Danescor’s clients regularly raise finance through the Company’s established funder network
Legacy Approach
Opaque process based on historical relationships instead of a single transparent marketing consolidating financing options. Manual unstructured process leading to inefficiency, extended transaction timeline and increased costs.
Danescor Approach
Integrated solution exploring financing options in parallel with acquisitions. Access to a broad range of funding solutions through a streamlined, efficient digital process.
Result:
Financing options increased by 30%
Transaction efficiency increased by 20%
Costs reduced by 60%
Delivering a 250% increase in performance.
Financing Process
Preparation
Strategy
- Understand shareholder objectives and funding requirements
- Identify key parameters and constraints of funding requirement
- Model, analyse and evaluate range of financing options and consider operational and valuation impact
Review and establish funding requirements together with areas of flexibility. Create financial model incorporating optionality with in built stress tests, sensitivity analysis, covenant and valuation ratios and returns. Understand shareholders’ key reasons for raising finance and identify red lines. Identify additional funder characteristics important to stakeholders along with desirable transaction timeframe. Establish Project strategy in terms of dual process or single solution together with preliminary timeline.
Lender Market
- Identify lenders and/or equity providers suitable for the considered transaction
- Research and prioritise financing options
- Create marketing materials and information pack incorporating detailed financial model.
- Establish marketing campaign and project strategy
Research, identify and profile applicable finance providers whose products best match the Company’s requirement. Understand and document individual funder processes at a high level to confirm draft project timetable. Produce marketing materials outlining investment case or lending opportunity, incorporating detailed financial model and comprehensive company and transaction overview.
Outreach
Approach
- Reach out to selected finance providers with preliminary conversations
- Execute NDAs and share detailed information pack with selected parties
- Receive and assess initial feedback responding to preliminary due diligence questions
Initiate outreach campaign to financing providers, holding preliminary conversations in order to establish appetite and individual funding bandwidth with each particular counterparty. Release and execute NDAs and manage the dissemination of information packs together with fielding initial questions and providing supplementary guidance where appropriate. Project manage and respond to specific counterparty questions and requests and arrange initial management calls or meeting where applicable. Issue process letters and manage transaction timelines.
Narrow the field
- Evaluate and assess proposals received from interested parties
- Share further information and hold management meetings as required
- Analyse and evaluate term sheets and financing proposals received concentrating on a small number of preferred parties
Collate, evaluate and analyse initial indications of interest received with detailed comparability analysis. Arrange and project manage Company presentations providing additional information in order to improve and enhance available financing proposals. Gain a thorough understanding of each fund provider’s specific approval process and associated costs and adjust transaction timeline accordingly. Identify and select additional advisers as and where necessary.
Closing
Negotiation
- Establish walk away position
- Refine negotiating strategy
- Execute in-depth negotiation to identify preferred option
- Document and execute financing proposal
- Agree project scope and timetable to completion
Collate, evaluate and analyse indications of interest received with detailed comparability analysis. Project manage detailed negotiations with interested parties in order to drive and enhance proposals tailored to the Company’s specific requirement by employing competitive tension amongst finance providers. Finalise and agree detailed term sheets or letters of intent whichever is applicable. Agree on the scope of due diligence appropriate together with mutual buy-in to the transaction timeline. Set-up virtual data room and begin to populate.
Due Diligence and legals
- Set up and populate VDR addressing due diligence questionnaires received
- Monitor, project manage and progress financing approval process
- Project manage work streams, responsibilities and timelines
- Minimise and mange any due diligence renegotiations
- Finalise and sign financing documents
Agree term sheet or letter of intent whichever is applicable and complete information gathering and virtual data room population. Provide virtual data room access together with appropriate support and guidance to aid the due diligence process. Project manage and complete associated documentation and approval process necessary for financing. Coordinate additional information requests and manage any related renegotiations or term changes. Finalise documentation and manage timeline to drawdown or transaction completion.
Digital process
Integrated transaction application
Danescor’s transaction management application provides an integrated solution incorporating the fundraising process alongside M&A activities. The solution covers acquisition financing options as well as process management whether that be working capital facilities, senior or mezzanine debt financing or private equity funding.
Tools and resources
Seamless funding process
In-depth information is provided for funding options across product types for easy review and inclusion in the transaction process. Pre-built funding models and transaction templates provide invaluable efficiencies and shortened timelines to projects.
Specialist support
Knowledgeable & experienced financing resource
Danescor has established and deep relationships with leading fund providers who are committed to the sectors we cover. With extensive knowledge and experiences of lenders’ and investors’ internal processes, our Professional Services team provide insight and acceleration to the funding process.