The Collins Group Inc. -- Services

By: The Collins Group  09-12-2011
Keywords: financing, investment banking

The Collins Group Inc. -- Services

As a small investment banking boutique firm, we tailor our services to specific client needs. The Collins Group’s knowledge of markets, strategic partners, and insight into the growth dynamics of companies spans Europe and North America.

  • We arrange financing for development, expansion, acquisitions and buy-outs.
  • We provide counsel and advisory services to private and public companies on financing and M&A assignments.
  • We specialize in sourcing financing for our clients from US and European VCs and PEGs.
  • In connection with arranging financing for our clients, we prepare business, technology development and market rollout plans.
  • We provide support at all stages of the M&A process - strategy and target identification, evaluation, initiation, discussion and negotiations, and completion.
  • We prepare our clients for the investment due diligence process.
  • We identify and recruit Strategic Partners for technology companies, and also arrange channel distribution and VAR agreements for them.

Developing and implementing a strategy to recruit Investors and Strategic Partners, or identify M&A targets, need not be a long or complicated process. Once engaged by a client, the role of The Collins Group is to:

  • Study the client's business, operations, financial position and prospects.
  • Work with the client to refine its business, product and "go-to-market" strategies.
  • Determine with the client the "collateral material" that will be needed to carry on financing negotiations and pass the "due diligence" test.
  • Prepare a corporate overview and power point presentation to be used in approaching investors and strategic partner prospects.
  • Identify and solicit potential investor, buyer, acquisition and strategic partner targets for our client.
  • Advise and assist clients in negotiations to transaction closings.

The Solicitation

TCG has developed a solicitation process for fund raising designed to minimize client involvement until a prospective investor, buyer acquisition target or strategic partner is fully "qualified and interested":

  • We comb our VC/PEG database to develop initial investor targets.
  • This initial target list will be 100+ VCs, PEG, corporate venturing arms and individual companies.
  • Targets could be a mix of investors, strategic partners, acquisition and channel distributors.
  • We make all initial approaches and carry on all discussions until specific targets have developed a sufficiently high level of interest to request a company meeting and management presentation.
  • We work with the client during the detailed discussions for a "term sheet", the due diligence process and through to closing.

Special Challenges For Technology Companies

Some of TCGs clients are early and mid-stage technology based firms. These companies have special needs, notably obtaining, validating, defending, or extending their current market position. Today there are major opportunities for growth and success, but to achieve this certain factors have to be carefully considered:

  • Validation of the technology in the marketplace
  • Extending selling cycles
  • Strong leadership with a willingness to enlarge the company's team
  • Proven experience in growing a business
  • Caution regarding execution of mergers
  • Increased globalization leading to more rapid development of competition
  • "Technology fatigue" in some sectors causing reticence to purchase new products and services
  • Cross collaboration and stratification among younger companies (one company makes, another integrates, a third distributes, a fourth provides after-sale services, etc.)
  • Smaller budgets for new technology equipment, software, and services
  • Downsizing, protection of existing investments, and resulting VC and PEG caution for new investments

Keywords: financing, investment banking