Apohan is a unique type of equity funding consulting company for small & medium enterprises (SMEs) in India. Unlike other firms, Apohan is not a compliance or statutory services firm but a strategic advisory & implementation company. Apohan knows a business as a business and speaks business language. Apohan is capable of communicating with a businessperson in his own simple business language.
Apohan is not a broker but carries out a wide variety of scope of work in M&A engagement. Apohan is connected to a wide variety of investors with a wide variety of preferences for investment ticket sizes, sectors, time Horizons, risk appetites, locations, expectation of rates of return, terms of engagement, etc.
Growth & Financial Turnaround Through Equity Funding:
Apohan provides end-to-end and tailor-made equity funding advisory and implementation services to high-potential, eligible SMEs with a emphasis on mergers & acquisitions (M&A) tools. Apohan helps the SME companies right from identification of the problem (or detailing of the growth aspiration) of the businessman to analysis of all available options of solutions, selection of the most suitable option, formulation of M&A strategy, preparation of fund requirement schedule, identification and approaching the equity funding person or organization, preparation of all necessary M&A documentation and communications, business valuation, contract drafting and negotiations, due diligence, closure of of the financing deal to handholding for around six months after disbursement of funds.
Unlike most other M&A service providers, Apohan has in-house or outsourced expertise of all related professionals under a single roof be it chartered accountants, company secretaries, business lawyers, MBAs in strategy, MBAs in finance, MBAs in marketing, investment advisors, investment bankers, engineers from various disciplines, technocrats, valuation experts, resolution experts under IBC, deal brokers, sector experts, etc.
Reasons for Stunted Growth & Financial Distress:
This small and medium enterprises can be divided into two types: The first type is those who want to ride on the opportunities in the market and want to grow to enviable level of success. The second type is those who are suffering from poor return on investment, from capital shortage for modernization or new projects, from working capital shortfall for full capacity utilization, from payments defaults of creditors, from recovery actions by banks, lenders, etc., and from the disputes between shareholders or directors. It is very rare to find a business which has neither a financial problem not a growth aspiration.
Equity funding is a complete contrast to bank loans. It is available based on the merit and potential of the business and not the current financial situation on ownership sharing basis. It is available in as much quantity and for as much term as needed. There is no requirement of any security or guarantee. There is no any guaranteed return like interest to be paid the investor. There is no need to pay the initial investment back. The entire risk of business is taken by the investor as much by the original shareholders. If the business fails, there is no punishment to original shareholders or directors in financial terms or otherwise from the investor. Equity investors are much better than banks in understanding a business but they still cannot run a business the way a technocrat promoter can run. However, the financial, corporate & strategic experience of an equity investor can come handy for a business. This looks simply amazing! Isn’t it? Let’s see why it is relatively so uncommon.
Why Equity Funding is Beyond Reach for SMEs?:
Investors look for the companies which are systematically organised & professionally run. They look for a clear business strategy to achieve growth, generate wealth & manage risks. They look for professional corporate management in terms of legal form, constitutional documents, stakeholder agreements, etc. They also look financing strategy to maximize returns of investment. Equity investors need a lot of documentation to assess the authenticity and the potential of growth which SMEs fail to provide as the documentation is absent in first place or they cannot compile it. This documentation in M&A is many times the one required by the banks.
Also, SMEs mistake poorly connected brokers for M&A consultants or investment banks. They fail to bring on board any serious investor. This creates a doubt about the very possibility of getting funds in the minds of SME businessmen and stop making effort.
Role of Apohan:
This is where Apohan comes to your assistance with its end-to-end, customised equity funding advisory and implementation services.
We are very choosy when we select a business for equity funding services as otherwise investors will not make an investment wasting everyone’s resources. We help the businesses where the management has a record of financial integrity; the company has sound competence in its technology, products, services, markets & competition & the trends in them; where there is a priced demand for the products that can create sustainable and handsome profits, where there is marketing capability & marketing infrastructure in place. There should be readiness to undergo the rigorous M&A process. The overall business proposition must be viable with of returns on investment in proportion of risks taken by the investors, where the offer for equity stake to be made to an investor is reasonable and rational. The focus of the business should be availing adequate equity funding to achieve a conclusive turnaround or completion of growth initiative with secondary regard for retention of control.
We present these investment-worthy businesses of medium sizes (with past peak revenue or networth or assets of more than Rs. 25 Crore and investment requirement of more than Rs. 10 Cr) in the market to the investors who want to make an investment in a private business.
Similarly we identify the right kind of investors for each SME that aspires to get equity funding. Apohan’s preparation of exhaustive company documentation, financial models & M&A contracts reduces the risk perception of the investors.
Apohan prevents financial failures through long-term strategic equity infusion advisory & assists the stagnant businesses to realize their growth dreams through equity partnership!!!
Join us & make your future!