Hey all, I'm here for advisement. I am personally not familiar with raising capital, but my manager - CEO, too - is ready to acquire 2 small companies valued between $3 to $5M each.
We are looking to find an individual investor (or a few investors) who will finance these plans in exchange for a 10 year company bond at 8%.
I've got a lot of questions about this given my lack of first hand experience doing this. But I think this is a good forum to get on the right track.
A few questions on my mind, in no particular order...
1. Where do you suggest I start or go to find interested individuals?
2. What are some things you would check about the investor's backgrounds?
3. What do you recommend I prepare to give in exchange to help them decide if our company is worth financing?
4. How long does it usually take you to find these individuals?
5. And, finally, is 8% appetizing for a typical BO tech company?
We dont believe we need a broker for this deal, but who knows, you can throw your opinion in on this too.