What are the step by step for raising debt/ equity
I have done a few banking interviews over the last two weeks (with small firms) and in two of these firms I was asked "how do you raise debt?" I do not do much in terms of actually raising the debt. I create decks, models, etc. but our MD is the one who takes my work, and takes it from there.
My question is, if someone were to ask, "Take me step by step through a debt/equity raise." How would you respond?
- Meet with client.
- Determine if they would like to raise debt or sell equity.
- Ask them how much they would like to raise.
- Create a financial forecast for the company for the next 5 years.
5-...?
Thanks for any help or advice.
lol...the company doesn't know anything. that's why they are paying you. projections what is the debt for / how much do they need how much can they afford / perm cap structure build interest / build a book / figure out pricing / launch the deal now figure out how to de-leverage them and do an equity deal (repeat the above but instead of leverage think of acc/dil)
Is that really all there is to it? So I was essentially doing the entire thing. Thanks
Had some exposure to DCM during an internship. Little bit rusty on this but from what I can remember, the process for a debt raise in the form of IG bonds was the following:
Takeaways/impressions for me from IG DCM were i) lack of modelling and ii) hardly any ‘advisory’ work to the extent that the treasury teams at large corporates know – pretty much – exactly what they want.
Raising Capital: Any Resources to Understand the Process? (Originally Posted: 06/13/2016)
Are there any resources or helpful WSO threads describing how an investment bank helps a company raise capital? Can somebody explain it?
Also, I don't completely understand what the difference is between Series A and Series B funding.
Thank you!
http://www.investopedia.com/articles/personal-finance/102015/series-b-c…
Internal process for debt/equity raise (Originally Posted: 02/06/2018)
Can someone please assist with the internal step by step process that a public and private company goes through, including documents, to raise debt and equity?
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