Investor Presentaiton
Once the Investor is satisfied that the potential investment target will
be a good partner, the Investor should consider the following questions:
What type of financial return or benefit is sought?
The answers to this question will depend on the form of investment. For
example, if the investment takes the form of a simple contractual agreement
with a US company, then the Investor's direct interest will be the Investor's
own revenue and not the revenue of the US company. If the Investor acquires
an ownership interest in the US company, then the Investor will have an
interest in increasing the profit of the US company.
The varying goals can be:
For the US operations and/or US company to have US services and operations
that can complement the Investor's services offered to foreign customers in
foreign countries.
For the Investor to generate cash from US operations.
For the US company to generate cash from its operations, perhaps even
for use in future US investments.
For there to be an increase in the enterprise value of the US company,
rather than cash flow from operations.
What is the size of the target company or companies?
Approximate revenue (this can range from $5 million to $500 million or
more.)
■ Approximate number of employees (this can range from 5-10 to more than
one thousand.)
Examples of companies that may be good targets in different sizes and stages
of development:
■ A small company that has little revenue but has state-of-the-art technology
and strong, active management.
■ A mid-size company that has grown as large as possible given current financial
resources but is ready to expand with new financing and management.
■ An established company (of any size) that has a good network of reliable
customers and contacts but aging technology and is in need of new financing,
new management, new spirit, and new sources of potential business.
Guide to Investing in the Freight Transportation and Logistics Industry in the United States
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