Always remember an investor will only invest if he/she is satisfied with your vision and plans.
Before you contact any investors follow this 5 steps:
First Step:
- Understanding what is the average asking price in the industry you are targeting.
- Find a deal that is in the price range of what you are looking for or cheaper.
- Add professionals on your board who understand the industry you are buying.
Second Step:
- Build a data room.
- Put together a summary of the deal you found. (called Teaser or one-pager).
- Preliminary Due Diligence
Third Step:
- Contact your lenders network to fully understand how much money you need to put as a down-payment and how much they will lend you, then you will know exactly how much money to ask the investors.
Fourth Step:
- Approach investors via email (message template) schedule a call.
- Share full data room - Information Memo
- Set up terms for investors.
Fifth Step:
- Deep Due Diligence
- Apply for funding solutions (Lenders Network)
- Start Drafting SPA
- Closing the deal
Hope this helps to understand the entire process of onboarding investors.
Sebastian Amieva