TIPS AND GUIDELINES
SUPPORTED AND TANGIBLE INVESTOR RISK ADJUSTED RETURNS
The goal of providing financials (track record (historical), projections, pro forma and assumptions) (“Financials”) is for an investor to have a tangible numbers-based pathway to think about your investment opportunity. The investor understands that Financials are a point in time picture of the investment opportunity and its prospects so any projections are understood to be best estimate from the capital seeker about future prospects. The value of the projections (even if they turn out to be grossly inaccurate) is that they provide an investor insight into the capital seeker’s thought process about providing financial (ie: numbers-based) returns to the investor.
|Projections are not expected to be accurate (the future cannot be predicted). Assumptions are expected to be supported.|
A capital seeker who has supported Financials that demonstrate the possibility for 100% returns is setting different expectations for an investor than one who has supported Financials that demonstrate 7% returns. The different expectations will create different questions and appeal to different investors.
· High Return
· High Risk
· What is market opportunity that supports high return?
· Why does it exist?
· What is capability of company to take advantage of it?
· Low Return
· Low Risk
· How safe is this investment?
· How is risk managed?
· What steps are being used to ensure capital protection?
Investors are comparing your opportunity to others to which they have access. Gaining access to capital is a competitive endeavor – your investment proposition will be compared with many others. Some investment opportunities will seem similar to yours and some will seem different and your projected return expectations provide a method for investors to make comparisons across different opportunities. Your ability to meet investor’s goals/return requirements needs to be strong enough to stand out from the pack.
Well-constructed Financials provide evidence and support to justify an attractive risk adjusted return. An investment occurs when risk adjusted returns have greater support and are more attractive than other investment opportunities.
About Deer Isle Group:
Deer Isle Group (“Deer Isle”) empowers investors and capital seekers with the right tools to ensure a transparent, smooth and efficient capital solution. Our proprietary technology offers fast access to capital markets beyond your network, and our expertise provides ‘as-needed’ closing expertise/guidance for a more successful capital solution.
Founded in 2007, Deer Isle with its subsidiaries, Deer Isle Capital, a registered broker/dealer, and Deer Isle Financial, is an innovative investment bank that provides “as needed” financial/strategy and closing advisory as well as proprietary technology solutions that give curated access to 10,000+ institutional investors.
Our successful track record includes having raised over $5 billion in private placement capital since our founding. Deer Isle’s capabilities and expertise provides value-add for both investors and capital seekers/issuers by understanding investor requirements and helping capital seekers achieve an institutional-quality sales process or capital raise.
Our fundamental strength is our institutional-quality advice combined with our proprietary technology solutions. Our success in these factors has helped drive our proven execution capabilities.
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