By reading the following text, you will understand the process of raising funds for your business. If you have any questions, they will be resolved by the end.
DHP offers a range of services such as private financing, bank credit, financial engineering, financial expertise, organization, restructuring and banking support.We also offer other legal advice on creation of legal entities, due diligence, corporate structures and establishment in Switzerland.Our goal is to help the entrepreneur realize their business dream and the firm does not participate in litigation.
The easiest way for us to help you to make an appointment and come into our offices. You can do this at Swissjurists.com or call +41 22 510.25.00.
This is a speciality. We can help with contracts, bylaws, resolutions, options and emption rights.
Financial drafting, commercial drafting, plans, short summaries and budgets.
Of course. A business plan describes the new endeavour and explains its purpose and target market, It outlines market analysis, organizational and managerial structure, products and services and the marketing strategies for branding.
Yes, the executive summary, or short summary is a nutshell version.
We would advise you to prepare a private offering memorandum. This is a legal document written by lawyers, which covers the main parts of a business plan. This is facts disclosed to investors through a lawyer.
You can raise as much as your project requires, but this route is best suited when you need to raise at least USD 10 million.
There are many alternative options, such as obtaining a loan from a bank or giving up equity to venture capitalists in return for finance.
We raise money through the United States market and specialise in this system.
Because of Liquidity and availability of capital in the US market. In simple terms this means you are much more likely to raise your money.
Through a Private Offering or an Initial Public Offering
Yes, it is possible to raise money through just a private offering. A private offering is the process by which the company/ issuer issues securities for distribution in the private markets.
They will ask questions such as:
  • how much do You need in total for Your project?
  • How do I recover my investment?
  • How long until I recovery investment?
  • What is my Guarantee?
  • What are the risks?
  • Have You done it before?
  • What are the critical success factors?
  • What is in it for me?
  • How much profit can I make?
It depends. Investors may not invest. Large investment funds could invest in one day, but generally if they do this it is because they are protected by a strong due diligence process. The process typically takes six months to one year, but this can be affected by conditions.
No, this is subject to legal regulation whereby the investor must be an accredited or, in other words, financially sophisticated or a financial professional.
You will be able to go public in the United States, with less stringent requirements for profitability than in Europe. The company should preferably be profitable or at least cash flow positive and have two years audited balance sheet.
The money that you make from an IPO arises from differences in valuation between the private and public market.
The public market values the anticipation and to invest the investor needs to know that opportunity exists. In other words, he must be able to evaluate the gain/risk ratio.
Yes, either through a merger or reverse merger or through securities market forces.
There are two main forms of financing. In the debt you will owe a sum of money to the investor which is the amount you have to obtain in addition to interest. With capital or equity, the investor will own shares in your company.
Equity dilution involves stock or share dilution. This can result from : A primary market offering or an IPO, Employees exercising their stock options or Investors converting bonds into stocks.
The process of an IPO takes shape over many months. Part of this is the due diligence procedure, which is the process of ensuring that the information contained in a file or prospectus is accurate and does not lend itself to a misrepresentation.
Commonly, DHP will require fees to be paid as the risk should be taken by the company and not the law firm.
You must complete a due diligence plan, listing the purpose, objectives and issues. After this collect documents containing the alleged evidence and a history of due diligence. During an IPO each question and response must be entered into a due diligence history.
The roadshow is a presentation organized by an issuer of securities and the syndicate of brokers and investment banks aiming at presenting to investors an opportunity of investment. The roadshow generates excitement and interest for the IPO.
There are many reasons. This could be because there is a low price, there is a high yield, a very low break even point, low influence from the stock market, favourable IPO timing or a reliable audit.
Not necessarily, the value may be different depending upon the timing of purchase. This is called the incremental price method.
Of course. A subscription agreement is required for potential investors. This can be paid either directly to the Issuer or into a trustee account.
This is the division of the securities into different phases. The price is calculated based on the risk associated with each phase. Thus there is more of an incentive reflected on a for early investment.
The process of a Private Offering Memorandum will take 6 to 8 months, while an IPO can take two years.
Yes, we also have a fast IPO service.
A private offering is distributed through a private network connected to the firm DHP. A IPO takes place only through syndication.
They will ask questions such as:
  • how much do You need in total for Your project?
  • How do I recover my investment?
  • How long until I recovery investment?
  • What is my Guarantee? What are the risks?
  • Have You done it before?
  • What are the critical success factors?
  • What is in it for me?
  • How much profit can I make?
Disadvantages:The disadvantages are the non liquidity of investment, the access to liquidity, the risk of finality and the absence of a valuable history of background.
These include buyback of the shares of stock by the issuing company, acquisition of the shares of stock by a third-party, merger or reverse merger of the issuing company, exchange of the shares of common stock of the issuing company against those of a publicly listed company and Initial Public Offering (I.P.O.) of the shares of stock.