Frequently Asked Questions

Basic Questions
1.      Q. Am I under any obligation when I have an initial discussion or meeting with LVI?

2.      Q. What are the first steps in getting started?

3.      Q. Will my conversations with LVI be kept confidential?

4.      Q. When should I call LVI to discuss my situation?

5.      Before I meet with LVI:

           a.  Q. Do I need to know how much money I need?

           b.  Q. Do I need to finish major company projects that are currently underway?

           c.  Q. Do I need to have my business plan and company presentation fully prepared?

6.      Q. How does LVI help me?

7.      Q. How long does it take to raise new long-term capital for my company?

8.      Q. How does LVI charge for its services?

Questions and Answers

1.   Q. Am I under any obligation when I have an initial discussion or meeting with LVI? 
A.  No.  There is never any obligation for initial conversations or meetings with LVI.  You will not be obligated for the cost of any services or expenses unless we have a prior discussion with you and you authorize payment for our services.

2.   Q. What are the first steps in getting started?

A.  If you are interested in raising additional capital for your company, the first step should be to call LVI. We can help you review the specifics of your company’s situation and give you valuable information regarding the state of the market and the likely cost of the new capital. We can discuss the prospects for your capital raising project and we will give you tips and advice concerning the best execution of the project.  In the first meeting we would like to get acquainted with the key people, discuss the Company and its goals and capital raising plans and familiarize you with LVI and our services.
 

3.   Q. Will my conversations with LVI be kept confidential?

A. Yes.  Any conversation with LVI and any confidential information you provide to LVI will be kept confidential by LVI.  If you would like us to provide you with a mutual Non-Disclosure Agreement (“NDA”) we will be happy to do so.

4.   Q. When should I call LVI to discuss my situation?          
A. In most cases you should call LVI now.  It’s never too early to get prepared for a project.  Even if you do not need the capital for a year, getting started now can help significantly.  While LVI moves very quickly, and we have resources to focus directly on your project, raising capital always seems to take more time than expected.  There are many reasons why it takes so much time to raise capital, including the time required to: think through the many important issues that come up, prepare the Company for the new investors, make introductions and perform due diligence, negotiate and document agreements and get approvals or authorizations, as required, from third parties such as other current investors, the new investors, various legal counsel, lenders and others.  The more challenging the project, the longer it is likely to take.  It is always better to start early.  For planning purposes, successful CEOs and founders usually start intense fundraising activity at least 6 months, and often as much as 12 months, prior to need.  If your current equity financing project needs to be completed more quickly, we can accommodate your needs, but fast action by all parties will be critical to success.

5.      Before I meet with LVI:

a.   Q. Do I need to know how much money I need?

A. No.  If you do know, great; you are a step ahead.  If not, LVI can help you think through the important factors that determine the amount of new investment capital that you will need.
 

b.   Q. Do I need to finish other major company projects that are currently underway, such as integrating an acquisition, improving IT systems or revising financial procedures?

A. No. The best time to start discussing when and how to raise long-term capital is when you first realize you will need to raise new money from an outside source.  While management is often distracted by other major company changes, waiting to start raising capital can create enormous pressure and stress.   By involving LVI earlier, management can use LVI to get the financing project moving forward, while the management team focuses on completing the other major projects. 
 

c.   Q. Do I need to have my business plan and company presentation fully prepared?

A. No.  A business plan can help our discussions, but the first order of business is for us to get acquainted with the key people, discuss company goals, review the current investor climate, discuss overall strategy and lay out the plan for raising the necessary capital.

 

6.   Q. How does LVI help me?

A. LVI is a firm whose business is helping its clients to raise capital.  We work at it every day and we have been doing it for the last 20 years. Depending on your needs, LVI can assist you at every step to navigate the process from the beginning all the way through to the closing of the transaction.  We help determine the capital requirements, assemble and coordinate the transaction team, analyze the business, organize and develop information needed by investors, prepare the Confidential Business Plan and investor presentation materials, identify and target the most relevant investors.  We conduct valuation analyses, arrange investor meetings and site visits, manage investor due diligence information requests, negotiate with investors, advisors and due diligence consultants and we structure and work with you right through the close of the transaction.  We manage the day-to-day process efficiently and confidentially, so you and the management team can continue to manage the business while maintaining full control of the capital-raising process.
 

7.   Q. How long does it take to raise new long term capital for   my company?                                                                           A.  In the best of circumstances, it takes two to three months from first introduction of an investor to closing of the financing. However, it is not uncommon for more complicated projects with multiple investors to take six months or more.   In addition, it takes time to prepare the company, the business plan, the presentation materials and the management team before the first introductions to prospective investors -- you always want to develop interest and negotiate with more than one potential investor.  Many factors influence the timing of a capital-raising project, including the following:

·         Quality of the business plan

·         Markets served

·         Type of product or service provided

·         Quality of the management team

·        Quality of the Company’s financial information and reporting systems

·        Number and type of prospective investors

·        State of the private capital markets

·        Familiarity of prospective investors with the company’s markets and strategy

·        Age and history of the Company

·        Focus and management of the capital raising project
 

8.   Q. How does LVI charge for its services?

A. To put the cost of our services in perspective, our fees are almost always much less than the cost to the Company of a delay in the financing or the cost resulting from a poorly structured financing.  The cost of our services is usually a percentage of the capital that is raised.  LVI is paid a success fee based on closing of the capital-raising transaction, with a small portion paid up front as an engagement fee.  Our fees generally range between 4% and 8% of the total capital raised.