Investment Banking, M&A, and Strategic Advisory
Please review the About Cochran Edwards Capital Partners section to get more details on these comprehensive and strategic services. Our founding partners and Managing Directors have been providing these services for nearly 30 years. Please contact Dave Cochran in Seattle at 206-552-0665, in Malibu at 310-494-6196, or use the form to Contact Us.
Cochran Edwards Capital Partners Services
At Cochran Edwards Capital Partners, Inc., we take care to provide our customers high quality services personalized for their unique needs. Our founding partners, Managing Directors, analysts, and support staff members are experienced, knowledgeable, professional, and efficient.
DealFlow Harvesting: The Proven Business Development System for Private Capital Markets. From Cultivation to Harvest, for Consistent DealFlow… A responsibility that has taken on a new role and significance in the Private Capital Markets (PCM) industry, including Family Offices, Private Equity, Venture Capital, as well as others. Please contact Dave Cochran in Seattle at 206-552-0665, in Malibu at 310-494-6196, or use the form to Contact Us.
Revenue Sharing strategies, services, and advice to create a capitalization program for your early stage, startup, micro cap, small business, or even lower middle market company. Our proven strategies will ramp up and book (pre) revenue and increase company valuation quickly, while minimizing any equity dilution and avoiding unnecessary debt.
Choosing the right investment banker is one of the most important decisions when selling your business and structuring a private capital raise. Our NCND and Investment Banking Agreements are the first step in this process. If negotiated and structured properly, these Agreements should align the interests of both parties and properly incentivize the investment banker to close a deal. Here are a few key points to cover when reviewing the Agreements and engagement letter.
Engagements: Investment Bankers will charge a non-refundable Expenses Deposit and Retainer Fee(s), plus a success / Referral Fee based on closing the transaction. This is a common and acceptable practice for Cochran Edwards as well. The investment banker will be putting a significant amount of work into preparing your company for sale and should be compensated for their efforts as the work gets completed. Paying a mutually agreed-upon Retainer Fee(s) also shows the Company's level of commitment to the process.
Exclusivity: Granting exclusivity to an investment banker can feel like a daunting proposition, and there is certainly a risk to doing so. If a banker does not meet your expectations, it can be a tremendous setback. That said, most investment bankers will require exclusivity. The sale and private capital raise process can take a number of months, and the banker wants to ensure that their time spent preparing your team and offering materials doesn’t go to waste. Choosing not to give exclusivity to an investment banker may limit your ability to get a top professional in your corner. To minimize your risk and ensure that your investment banker is committed, your Deposit / Retainer should be a small portion of the banker’s overall compensation — not nearly enough to pay for total time spent on your deal.
Term: The term of engagement specifies how long the Agreements last. Terms usually span 6-24 months, allowing time for Cochran Edwards to prepare a confidential information memorandum, send out summaries to potential buyers and private capital markets partners, solicit interest, receive offers, and negotiate a deal. Our Agreements also include a Breakup Fee Clause.
Choosing a qualified, experienced Investment Banking and M&A Advisory firm with relevant transactional experience is crucial to a successful closing for you, so make certain you are working with a firm that has a history of success. Not every deal will close, but you want an advisor who knows how to get a deal done and has a disciplined process that they use to maximize success for their clients, so be sure that they are thorough and persistent with you, otherwise, they won’t be equally thorough and persistent with closing your transaction. As far as the pricing model, compensation should be spread out over the course of the engagement. Advisors need to cover their out of pocket and opportunity costs, and that is the client’s responsibility.
Please take time to review this section regarding engaging investment banking firms and raising private capital, it is much different than obtaining a loan from a bank, as well as asking your local business broker to help you grow or sale your business. Cochran Edwards will help advise you in writing the teaser that attracts interest from the right buyer and private capital, preparing strategic marketing materials needed to sell your company and raise private capital, and reviewing and negotiating the indication of interest, letter of intent, term sheet, and/or the purchase agreement documents.
THE PRIVATE CAPITAL MARKETS AUTHORITIES