What is the best way to raise 25M EUR?

[daniels27]

I think you quoted my post from another thread. I definitely did not write this on here

Yes, if you click on your name in the quote, it links to the place where you posted it. It was on some other discussion, but it fit the purpose.

 

[GPT]

@2fire I think your best bet is private debt. Based on what I read and the size, I'd try Muzinich or similar boutique investment firms. Pay in mind in EU the regulation changes dramatically in each country so be sure to inform yourself while you approach potential investors.

Feel free to DM for any question

besides private debt, have you considered family offices? They are sitting on a ton of money and lots of them are not able to find enough eligible investments according to their risk appetite and diversification model.

 

[daniels27]

What is the predicted ROI? How much equity are you offering for 25M?

 

[jafo]

I am in the sector of medical devices.

I had a feeling

I suggest reading this: Four types of crowdfunding for startups—and how to choose one.

Even if the opportunity was excellent and I wanted to invest in it, the "system" would NOT allow me to invest €25M (unless you were politically connected and privileged and had the financial backing of institutional investors). It's just the reality of 2024!

PS. I can purchase €25M of JEPI tomorrow at JP Morgan Chase (Private Banking & Wealth Management | J.P. Morgan Private Bank U.S.), but if I want to send €5K to my elderly aunts (+90 years old) in Europe for them to purchase groceries and medications, my accounts would be frozen, and I would have to submit so much paperwork it will blow your mind

 

[2fire]

Have you considered going IPO? Going down that road you will come across a lot of parties with the much needed money. You might bump into one that shares your vision and allows you to keep the company private.

Keep in mind that someone couching up the dough will want something in return. And that won’t be just an interest rate.

That is how I meet my ex-CFO. He told me that better to not go with IPO and nearly robbed me. However he opened me eyes on a true value of my company and currently I have to complete several more steps, which suppose to increase valuation significantly. Seems most feasible way to do it is bank loans, however local banks don’t to hear about me buying another company for 10M or to finance a new factory in India for 2M. Swiss banks easily giving me a 1M mortgage for office via email, but if I am asking same for factory abroad, nobody even want to talk about it.

I think your best bet is private debt. Based on what I read and the size, I'd try Muzinich or similar boutique investment firms.

Thank you very much for a valuable suggestion.
Did you tried to work with them before? What are they asking as collateral?

besides private debt, have you considered family offices?

I tried personally with banks, but my ex-CFO were connected to family offices which were ready to provide a loan. However I found a conditions suspicious like: 50% shares as collateral, nearly 3 times larger amount of money, with 2 times shorter repayment date. For me it looked like a trap to take over my business.

What is the predicted ROI? How much equity are you offering for 25M?

As I mentioned earlier I am not looking for equity based investments. Business is profitable and growing steadily. With a loan I would be able to acquire other companies, what would rapidly increase my consolidated financial statements, which eventually would increase company valuation.

 

[jafo]

As I mentioned earlier I am not looking for equity based investments. Business is profitable and growing steadily. With a loan I would be able to acquire other companies, what would rapidly increase my consolidated financial statements, which eventually would increase company valuation.

I think you can bootstrap this yourself! I really do!

 

[GPT]

I think you can bootstrap this yourself! I really do!

If he is not willing to offer equity then bootstrapping is the only option when banks dont want to finance internationally.

 

[daniels27]

If he is not willing to offer equity then bootstrapping is the only option when banks dont want to finance internationally.

Maybe we can all contribute. What is the amount, currency, interest rate and desired term?

 

[GPT]

Maybe np

Maybe we can all contribute. What is the amount, currency, interest rate and desired term?

Maybe such a thing could work. Fact is that most financing nowadays comes from friends/family/crowd.

 

[2fire]

Maybe we can all contribute. What is the amount, currency, interest rate and desired term?

Currently I am looking to finance new factory in China. I have a 3 years rent free premises from government near to Nanjing. I am looking to purchases CNC equipment similar to which I have at factory in Europe. Until complete product registration will not be completed in China, I am planning to export 100% to my primarily factory in Europe, what will allow me to reduce shortage and free up machines.

For China project I am looking for the loan 2M EUR or 2.2M USD which will save me a couple of years compare to self-financing and will increase my production capacity. Interest rate up to 10%. Term not less then 3 years, but not longer then 5 years. Loan required for Swiss company, which is shareholder of Chinese. Possible to receive a loan to our subsidiary in UAE. I believe I could accept cryptocurrency in Switzerland and payback for the loan on the monthly basis to borrower’s bank account.

 

[Nicholas Van Orton]

As I mentioned earlier, I am finding your answers valuable and I very much appreciate it. Currently I am making some of homework based on what have been mentioned. While figuring out what else could be done.



I am in the sector of medical devices. We experience about 25% annual grow for the last decade and I am chasing it with expanding factory and opening factories in Asia to hedge risks in Europe. Orders from customers covering our production capacity for the entire year, despite increase of production. We have credits from local banks and EU grants, however it is not a 10M-25M.

My target company which is also manufacture of the medical products which could be sold via my channels, so it will be very much complementary. Large competitors practically doing the same and buying companies, however they are public and seems has unlimited resources.



Last year I have opened a facility there. However it is very long journey. Currently I am financing it from our own profit. Banks in China seems very open to finance it too, but they want to see some export. I hope next year we will have some figures to show.

Hi OP, there is a specialized medical devides company in Spain (unique in its field, exporting to Japan, US, Middle East, India), that might be of interest for a takeover. The owner is old and has no real succession plan, and I believe I might persuade him to engage in talks if that's something you're interested in.

NVO

@2fire Further to my comment above, I have in my network a private equity firm, well regarded in Europe as a leading industrial partner for profitable ventures, which I think would be a good fit for you. They are reasonable on their minimum ticket and allow for some room of manoeuvre in the terms and conditions, and are a slid source for growth before divestment.

Drop me a line if you'd like to discuss further.

NVO