How do I find the right investor for my company?
Finding a suitable investor for your company can be a difficult undertaking, regardless of whether you are selling your company or investing in it. There are many aspects to consider and take into account and there are bound to be some questions. In this article, we would like to give you tips on what makes a suitable investor and what you should look out for. As a rule, professional support is essential.
What makes an investor suitable?
Several criteria should be considered when selecting potential investors. This involves identifying the right target group. Every investor has different priorities and interests. In this context, it is also important to understand the investors’ investment strategy: What type of companies have they invested in in the past? Does your industry, company, size and growth phase fit in??
Depending on the development phase of your company, other investors may be interested. If your company is in an early phase, you are more likely to have luck with business angels and early stage venture capital funds. Investors who are interested in the growth of a company, on the other hand, are more likely to back a business model that can already demonstrate success. Have you defined a clear growth strategy? Then the latter group might be more suitable for you.
And finally, there should also be a good interpersonal fit. This factor should not be ignored. A good relationship of trust between entrepreneur and investor can lead to long-term cooperation. In the event of a sale, you can be sure that your life’s work will end up in good hands.
When deciding, it makes sense to rely on professional support from an M&A advisor such as Conpair. We can help you find the right investor who not only fits your company financially, but also strategically and personally. Rely on our expertise and experience to identify potential investors, conduct negotiations and guide you through the entire process.
Preparation: Important steps in the search for a suitable investor
Good preparation is everything. The following aspects are important in this context.
Defining goals and expectations
The first step is to define your own values and expectations. Ask yourself what financial goals you are pursuing. This way you can make it clear to potential investors where your company stands. You are also more likely to find someone who agrees with your long-term vision this way.
Valuation of your company
A valuation by an M&A advisor is essential in order to determine a suitable selling price. This valuation takes into account not only the financial figures, but also intangible assets such as intellectual property, employee qualifications and customer base.
How to convince potential investors?
The right investor(s) seem to have been found. How can you convince them to invest in your company? The following points are important:
- Openness and transparency through clear communication of the USP and the business model
- Market knowledge and honesty through information about competitors and an honest exchange with the potential investor
- a good business idea by keeping an eye on the market and, at best, offering a gap in the market or a solution to a real problem
- ersatility in the team through a good mix of different genders, skills and character traits
- a clear growth strategy with a comprehensible plan
Finding the right investor for your company requires a lot of time, research and patience. Not only financially, but also strategically, he or she should fit the company. Make sure that the potential new owner shares your company vision and approach the search strategically and thoughtfully. Professional support is advisable here.
We support you in finding an investor
Rely on our expertise! We know what is important when looking for a suitable investor. Thanks to our broad network of potential investors, we can also easily establish the right contacts. We are also at your side beyond this – from the preparation of all relevant documents to the successful conclusion of the transaction. Arrange your personal appointment now.