FINANCING TYPES
Investments take a variety of forms ranging from straight equity, hybrid, or debt. All of our principal and agency transactions involve a significant degree of equity participation, which is commensurate with the risk and is essential to achieving our objective of capital appreciation. Our transactions fall within four general categories:
Expansion Financing
Rapidly growing companies usually require outside capital to fund their growth. Adequate bank financing is often unavailable, and secondary public offerings may be premature. Wakabayashi Fund provides capital from an agency /principal basis to support growth and improve growing companies’ access to financing from banks or other institutions.
Early Stage Financing
Wakabayashi Fund provides capital to early stage companies with innovative products or services and strong potential for rapid growth. Such companies should have strong indications of customer demand and a seasoned management team that can quickly and efficiently produce significant sales and earnings.
Management Buyouts
Managers who have the opportunity to acquire businesses usually need outside capital and financial expertise to complete such transactions. Wakabayashi Fund may assist in providing the required equity capital as well as leadership in organizing additional financing.
Recapitalizations
Owners of small-cap companies often need liquidity but do not necessarily desire to sell their companies. Wakabayashi Fund organizes and arranges financing recapitalizations to provide liquidity and address the financial issues facing owners of such businesses.
TO ARRANGE FINANCING
Written communication is the best way to contact us initially. After a cursory review and discussion of your business, we can provide an indication of how we might work together. If the opportunity is not aligned with our investment interests, we may be able to refer you to other financial sources.
If, on the other hand, the opportunity matches our interests, we will want to spend time with company management to gain a thorough understanding of the following areas:
- Feature of your product service and space
- Market strategy
- Characteristics of the market served and competition
- Expansion plans
- Management teams
- Financial data-historical projections
- Use of funds
The time required to complete a financing/increased liquidity including initial screening, due diligence, legal documentation and closing varies, but can generally be accomplished within weeks.