We always wish to be involved in a financing exercise from the outset, including the very crucial strategic planning/packaging stages upon which success so much depends.
Each financing project is handled by a dedicated team which works very closely with our client throughout the financing.
A typical work program for a private placement exercise in the international capital markets could include the following steps:
- strategic planning: project content, scope, strategy, targeting
- initial sounding out of possible investors
- completion of preparations: introductory materials, business plans, supplementary information; legal and accounting considerations; financial projections, valuation, pricing, etcetera
- initial discussions/meetings with possible investors; Q and A; further exchanges of relevant information; follow-on meetings and dialogues as appropriate
- negotiations (various aspects)
- due diligence (legal, accounting, other)
- Closing
An international financing exercise usually takes from 2-3 months, sometimes more, although we always try to speed up the decision making process as far as possible. Some international travel by our clients as well as ourselves is often called for.
Taishan Capital's working terms follow standard international practice in the corporate finance/investment banking industry, although our fees are much lower.
Typically our fees include:
- a working fee, to lead and organize all tasks related to a financing exercise. Helps offset some of our management / overhead costs incurred during the financing process.
- reimbursement of incidental out of pocket expenses. This does not include third party legal or accounting expenses.
- a success fee, usually calculated as a percentage of the amounts invested by third party investors that are directly arranged by us. This is payable upon the successful closing of the financing and is usually subtracted from the new funds our client receives.