Capital Raising Strategy
Management has to decide what type of capital injection is needed. Equity will reduce the risk of the extra funding but dilutes ownership. Debt injection will maintain the current ownership but reduce the strength of the balance sheet. The current balance sheet and cash flows determine the ability of the business to offer collateral to the financier and service the necessary debt. New investors will want to see a certain level of return on their investment. More often than not a combination of debt and equity can be used as a cash injection.
Pollination Capital understands how to structure the necessary funding requests and present it to prospective financiers or investors. This necessitates an expert understanding and financial analysis of future cash flows and returns, which is one of our core strengths.
We normally raise capital for the following purposes:
- Share buy-backs
- Leveraged-, management- and structured buy-outs
- Expansion capital
- BBEEE deals