HIGHLIGHTS
“Are you Money Hungry?” Business New Haven, March 18, 2002
Business New Haven
is a regional business-to-business publication targeted toward and
circulated to business owners and top managers at companies throughout
south central Connecticut.
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Are You Money-Hungry? |
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By: Lisa Micali |
Business New Haven |
Even in an environment of downsizing and closed doors, many entrepreneurs
are seeking money (as well as perhaps, a buyer) in a recessionary economy.
Cash-strapped for any number of reasons (survival, growth, seeking a bridge
to a planned event such as an IPO or sale), companies need to understand the
reasons behind their needs, dust off their business plans and get back down
to business. That was the message at the Connecticut Venture Group's Nuts &
Bolts of Equity Deals held at the New Haven Lawn Club on February 26.
Top Connecticut venture capitalists, attorneys and accountants gathered with
entrepreneurs to discuss follow-on rounds in today's uncertain market. Said
host Geoffrey Gregory, a senior vice president with Webster Bank, “This is
an exciting time to come into the market to raise funds. Optimism abounds.”
Panelist Donna Brooks, a partner and member of Shipman & Goodwin's business
law department, stressed the need for “businesses to focus hard on the
reasons behind their need and eliminate all uncertainty and risk for
investors.”
“The business plan isn't dead,” she said. “Polish and update it. Look inside
the company. Dynamics change. Self-reflect. Explore various constituencies
from every side. Position yourself in the best possible light. Fix partner
and supplier problems before they come back to haunt you. All this factors
into whether or not you'll get the money.”
“Valuations loom large,” she continued. ”Risk and return issues are often
acute. Get everything in writing. Avoid back-of-the-envelope deals and
create standard deal documents.”