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MAKING SUCCESSFUL DEAL SOURCING CALLS DEAL SOURCING CALL SOP DO’S
Be prepared Make calls early in the week and early in the day Before the call, make sure there is enough airtime on your phone Choose a quite place Be positive
DON’TS
Don’t get frustrated because of the network DON’T GIVE UP. The next best company is always one call away.
MAKING THE CALL Introduction: ANALYST: Hello. My name is [BLANK]. I am calling from [INSERT INV./FUND MANAGER NAME]. [INSERT ONE TO TWO SENTENCES ON YOUR FIRM’S BACKGROUND; YOUR ELEVATOR PITCH FOR PIPELINE COMPANIES]. I recently learned about your company through [INSERT HOW YOU CAME TO KNOW ABOUT THEM]. Have you ever been approached by private investors before?
COMPANY: YES, I HAVE Analyst: Great! Well, let me briefly tell you what we do as an investment fund manager. We invest in companies that have the potential to grow. As in the case with many SMEs like yours, access to finance can be a major obstacle to growth. We provide said access to finance through a private investment that helps SMEs scale beyond their constraints. This is in exchange for a certain amount of ownership in the company. For debt financing, if you take a loan, you will pay interest. Whereas for equity financing, it is different than your typical bank loan. If you accept an equity partner, you let go a portion of your ownership and the investors will be paid a dividend.
COMPANY: NO, I HAVE NOT Analyst: Not a problem, there are free trainings on the ins and outs of private investment, covering debt financing, equity financing and how the two are different and which one makes
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the most sense for your company (e.g., RENEW’s PE Investment Seminar training). I’d be happy to send you some resources and suggested trainings via email. In the meantime, let me briefly tell you what we do as an investment fund manager. We invest in companies that have the potential to grow. As in the case with many SMEs like yours, access to finance can be a major obstacle to growth. We provide said access to finance through a private investment that helps SMEs scale beyond their constraints. This is in exchange for a certain amount of ownership in the company. For debt financing, if you take a loan, you will pay interest. Whereas for equity financing, it is different than your typical bank loan. If you accept an equity partner, you let go a portion of your ownership and the investors will be paid a dividend. Is that clear so far?
Clarification: ANALYST: Is everything I’ve covered so far clear? Do you have any questions that I can answer at this time?
COMPANY: YES, THIS ALL MAKES SENSE Analyst: Great! Not only do we provide growth capital, but we also support companies in governance, operations, HR and recruiting, finance and accounting, and sales and marketing functions (i.e., your pre- and/or post-investment value creation services). We are hands-on and work directly in partnership with companies to help them achieve their goals. COMPANY: OK, THAT SOUNDS GOOD
COMPANY: NO, I DON’T UNDERSTAND… Analyst: Happy to clarify… [Answer their questions in a succinct manner and encourage them to attend the next PE Investment Seminar training]. COMPANY: OK, THAT IS HELPFUL
Confirmation of Services/Products: ANALYST: May I ask what your business is engaged in? COMPANY: Our company is engaged in…
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Gauge Interest: ANALYST: That sounds interesting. Do you see any opportunity for us to work in partnership and grow your company? Are you interested?
Company: YES, I SEE A POTENTIAL. Analyst: Very well. I think it would be a great idea if we meet and continue our discussion. What time is appropriate for you? Does [SUGGESTED DATE/TIME] work for you? To make it easier, I will come to your office, and I will call you a day before to remind you of our meeting. I will see you soon. Thank you.
Company: NO. WE ARE NOT CURRENTLY LOOKING FOR PARTNERS. Analyst: Thank you for letting me know that. I hope you will contact me when you believe your company is ready. In the meantime, I do encourage you to attend a training on private investment (e.g., RENEW’s PE Investment Seminar training). There are free and/or low-cost options available and I think it would held inform you of the various financing options of which your company could take advantage. Thank you for your time!
SENDING SUCCESSFUL DEAL SOURCING EMAILS Dear [NAME WITH TITLE], My name is [NAME], [TITLE] at [INSERT INV./FUND MANAGER NAME] in [COUNTRY]. As a brief introduction to my firm, [INSERT INV./FUND MANAGER NAME] is an investment firm that specializes in investing in, and then growing SMEs into market leading firms in [INSERT REGION]. [INSERT INV./FUND MANAGER NAME] has been investing in [GEOGRAPHIC LOCATION] since [YEAR], and [INSERT UNIQUE SELLING POINT]. You can read more about [INSERT INV./FUND MANAGER NAME] at [INSERT WEBSITE LINK] [INSERT INV./FUND MANAGER NAME] has interest in working with companies in the [SECTOR]. We came across [TARGET SME NAME] on the [where you learned about the company, who referred you to the company], and wanted to explore if there exists an opportunity to work with your company. In addition to growth capital, [INSERT INV./FUND MANAGER NAME] supports each company we invest in. We provide [INSERT ADDITIONAL SERVICES PROVIDED]. Please find attached a brief document that explains who we are, what we do and what we expect from local companies.
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If you are looking to grow your business and are seeking a financial and growth partner, we would like to meet you and learn about [TARGET SME NAME]. Please let me know if you have time to meet this week or next. I can also be reached on the number below. I look forward to hearing back from you. Warm regards, [NAME]