Practical structuring advice for operators

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Summary

William Fry, CEO of Mainshares and founder of Beacon Business Brokerage, discusses how Mainshares helps SMB buyers close the gap in equity funding. Mainshares provides a network of credit investors interested in owning a piece of SMBs, allowing searchers to find additional equity infusion to complete acquisitions. Mainshares assists in structuring the deal, providing standardized investment documents, and facilitating compliance. The platform also offers tools to manage the capital raise and access to investors. Fry advises entrepreneurs to start early, build relationships with investors, and create a cohesive narrative for the capital raise. He emphasizes the importance of transparency, momentum, and prioritizing anchor investors. The conversation explores various aspects of raising capital and working with a broker dealer. It also discusses compensation for referrals and the trend of all equity deals in the future.

"Mainshares is a platform for entrepreneurs and investors. Broker-dealer services provided in connection with some of the investment opportunities on the Mainshares platform are offered through Main Street Securities LLC, a registered broker-dealer, affiliate of Mainshares, and member of FINRA/SIPC. For additional information, please contact your licensed securities representative of Main Street Securities LLC or visit FINRA’s BrokerCheck."


Chapters

00:00 Introduction to MainShares and Beacon Business Brokerage
01:02 The Problem of Closing the Gap in Equity Funding
02:01 MainShares' Role in Capital Raising and Deal Closing
03:01 Structuring the Deal and Identifying Investor Preferences
04:20 Standardizing Investment Documents and Compliance
05:42 Differentiating Between Transactional and Strategic Investors
06:29 Flexibility in Working with MainShares and Other Investors
07:20 Pricing Options for Entrepreneurs on MainShares
08:13 Comparison to Other Investment Platforms
08:18 Timing and Preparing for the Capital Raise
09:34 Early Engagement and Building Relationships with Investors
10:04 Structuring the Equity Raise for Different Business Types
12:28 Preparing for Investor Exits and Liquidity Events
13:11 Considerations for Overvaluing a Business
15:18 Creating a Narrative for the Investment Structure
16:32 Proof of Funds and Pre-Qualification Letters
17:58 Creating FOMO (Fear of Missing Out) Among Investors
19:10 Timeline and Closing the Capital Raise
21:20 Crafting a Cohesive Capital Raising Narrative
23:47 Avoiding Over-Engineering the Deal and Focusing on Operations
25:46 Reaching Out to Investors and Creating Momentum
28:26 Attracting Investors for Niche Businesses
31:13 Creating Urgency and Closing the Capital Raise
34:41 Coaching Blue Collar Operators in Raising Capital
36:40 Transparency and Timelines in the Capital Raise
38:31 MainShares' Approach to Growing the Investor Network
40:51 Working with a Broker Dealer
43:04 Compensation for Referrals
44:14 Raising Capital with Debt or Equity
45:44 The Rise of All Equity Deals