Investor Negotiation Techniques. Aim To close the deal as soon as possible with the highest possible...

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Transcript of Investor Negotiation Techniques. Aim To close the deal as soon as possible with the highest possible...

Investor Negotiation Techniques

Aim

To close the deal as soon as possible with the highest possible valuation

This is sales !

• This is a sales situation – you are selling an investment opportunity

• Value drivers are the arguments to buy shares in your company

• Different from sales drivers / sales argument to sell your product and services

• Always agree on progression – what is the next step?

1. Due diligence:- Not prepared - If findings

2. Documents:- Not prepared

3. Discussions:- About non-disclosure agreement- About financial aims, exit and ROI- About the structure of the deal - About milestones for call-in of capital etc.- About valuation

What takes time

• The Miniature booklet must be available • IM with investor angle available • A non-disclosure agreement must be available if you

need one • Clarify parameters for call-in of capital • Already registration in a public shareholders register

if any ?

How to reduce the time

Adjust your mind-set

• Clarify your value drivers• Adjust your mind-set for talks with investors

• Which milestones may interest an investor in my company?

• When do I really need the money? • Are the milestones really realistic?

Milestones for call-in of capital