• Scaling up your business can significantly benefit you personally, financially, and professionally. It not only enhances financial security through increased valuation and profitability but can also bring immense personal satisfaction from achieving growth and building something impactful.
• Opportunities for family involvement can lead to creating a lasting legacy and possibly generational wealth. Owners gain recognition, improving their professional reputation and opening doors to new opportunities. Scaling up allows for a better work-life balance by enabling delegation, which reduces stress and empowers employees. It also increases the business's community impact and fuels the owner's personal development by learning and adapting to new challenges. 
• Additionally, the financial freedom gained supports pursuing new ventures, showcasing the multifaceted benefits of scaling up a business.

• Scaling up your business offers substantial advantages to the company, including increased market share and economies of scale, which can enhance competitiveness by reducing costs. It elevates brand visibility and diversifies risk through product expansion and new market entry.
• Growth attracts higher-calibre talent and makes the business more appealing to investors. Scaling provides resources for innovation and R&D, leads to operational efficiencies, and opens new markets and customer segments. 
• Ultimately, scaling up can boost immediate business performance and also secures long-term sustainability, ensuring the business remains viable and competitive in the future. This strategic growth is designed to empower your business to thrive in an ever-evolving marketplace.

We focus on systematising your business operations, making your company attractive to potential investors and buyers, and ensuring it can run without you, so you can aim for rapid and sustainable growth.

We can show you how to develop and implement systems and processes that allow your business to operate without your constant supervision, so you can focus on strategic work rather than day-to-day tasks.

One method to consider in creating a business that is attractive to investors and buyers is to focus on a single core product or service, developing a strong sales team, and systematizing operations to ensure consistency and quality.

By analysing your current offerings for profitability, scalability, and market demand, we help pinpoint the product or service that can drive growth and make your business more appealing to potential investors or buyers.

Systems are crucial for scalability, allowing for efficient operations, consistent customer experience, and freeing up the business owner's time to focus on strategic growth. They are essential if you want to raise capital or sell your business, especially in Western Australia.

A private capital raising can provide the funds you need to make your vision a reality. It can make your business debt free with no mortgages or charges. Having a debt free company could:

• permit you to discharge your personal guarantees to the bank,
• release the bank’s securities over your family home and other assets.
• Relieve you of the burden of having to repay the money injected, provide security, or give personal guarantees.

The benefits of a private capital raising compared to borrowing are:

• It could make your business a far more attractive proposition to a potential investor – no secured lender means that the investor’s own equity position is improved.
• It can offer your business flexibility in funding, access to strategic partnerships, and the opportunity to grow without unnecessarily diluting control. 

If your business qualifies, and we both agree it is “investor ready” to raise private capital, you can get direct access to a network of over 9,750 sophisticated investors, high net worth individuals, family offices, venture capitalists, and international investors in a way that is compliant with the Corporations Law. They are all interested in investing in private companies with strong fundamentals and high growth potential.  Now, we don’t guarantee that these investors will definitely put money into your company – it depends on the strength of your company and your team - but they do have a track record of investing in private companies in a number of different industry segments in Australia. 

Yes, private capital raising can provide the necessary funds for scaling up, allowing your business to:
expand operations, 

• enter new markets, and 
• enhance technological capabilities 
• without relying solely on traditional financing methods.

Private capital raising can increase your business valuation through growth strategies and operational improvements, making it more appealing to potential buyers and positioning it for an eventual successful sale at a higher multiple.

When raising private capital, it's essential have a business that sophisticated investors want to invest in, that is “investor ready,” and a capital raising process that complies with regulatory requirements, including those outlined in:

• section 708 of the Corporations Law of Australia, and
• section 18 of the Competition and Consumer Law. 

We do not provide legal, accounting, tax, real estate or business sale agency services, or financial advice. You need to have lawyers to draft the shareholders agreements and other documents (as well as vet your information memorandum and other documents), accountants to advise on your company’s own financial position and the financial information you give to investors, and in many cases, a licenced financial advisor to make approaches to investors if you don’t fall within the exemptions of the Corporations Law.

We can assist in introducing you to these professionals if you don’t already have them.

 

Yes, a capital raising can address cash flow issues and capital limitations by providing a direct infusion of funds, enabling your business to finance growth initiatives and manage operational expenses more effectively.

A successful business exit enhances your reputation amongst your peers as a successful entrepreneur and business leader. This can open doors to advisory roles, speaking engagements, and other professional opportunities. It can also:

• Provide you with significant financial resources, ensuring personal financial security. It could also give you the freedom to pursue other interests, investments, or retirement without financial constraints.
• Allow you to leave behind a lasting legacy. The business continues to thrive under new ownership, maintaining the original vision while expanding its reach and impact.
• Give you the opportunity to invest in new ventures. This could mean starting a new business with the benefit of prior experience or investing in other businesses, fostering innovation and entrepreneurship.

The process of building a business to the point where it can be sold for high multiples requires dedication, innovation, and resilience. For many owners, the successful sale is not only a financial achievement but also a personal milestone that reflects their hard work and commitment. It offers a moment of reflection and pride, as well as the motivation to pursue new challenges and personal development opportunities.

The Saxon Klein system’s focus on operational efficiencies, strategic partnerships, and specialisation in a company’s core products or services can enhance your business's overall value, making it more appealing to potential buyers and possibly leading to higher sale prices.

By demonstrating that your business can operate independently of its owner, the system can make your business attractive not only to local buyers but also to those from other states and overseas, thus expanding your potential buyer pool.

The organised and systematic approach to documenting business processes and financial records simplifies the due diligence process for potential buyers, making your business appear less risky and more attractive investment.

With a structured approach to engaging with potential buyers and preparing information memorandums, the system helps in maintaining confidentiality throughout the sale process, protecting sensitive business information.

When selling your business, it's essential to have a business that buyers want to invest in, that is “Investor Ready,” and to have a sale process that complies with regulatory requirements, including those outlined in:

• the Corporations Law of Australia, and 
• the Competition and Consumer Law.

We provide corporate advice. We do not provide legal, accounting, tax, real estate or business sale agency services, or financial advice. You need lawyers to draft the sale agreements and other documents (as well as vet your information memorandum and other documents), accountants to advise on your company’s own financial position and the financial information you give to investors, and, if you are not going to sell your business in your own right by private negotiation, you will need a licenced real estate agent and/or a licenced business sale agent to advertise the opportunity publicly. We can assist in introducing you to these professionals.

Identify your business's core strengths, target markets, and unique value proposition. Set clear, measurable goals for growth and outline the strategies to achieve them. The first step is the “Investor Ready Assessment”, a detailed set of questions that you answer so that you have a snap shot of where you currently are – and a plan to get to where you want to be.

Focus on the products or services that have the highest demand and profitability. Refine and perfect these offerings to ensure they can sustain increased volume and market expansion.

Streamline processes and systems to improve productivity and reduce costs. Implement technology solutions where possible to automate tasks and manage workflows more efficiently.

As you scale, your team needs to grow too. Hire skilled individuals who align with your company culture and can drive your business forward. Invest in training and development to nurture talent within the organization.

Maintain a flexible, adaptive company culture that can grow with the business. Foster innovation, resilience, and a shared vision among team members to support the scaling process.

Determine the financial resources required to scale and explore various funding options, including venture capital, bank loans, or angel investors. Ensure you have a solid financial plan to manage cash flow effectively during growth phases.

Look for opportunities to enter new markets, whether by geographic expansion, targeting new customer segments, or diversifying your product line. Conduct thorough market research to inform your expansion strategy.

As you grow, maintain or enhance the quality of your customer service. Happy customers are more likely to return and refer others, driving organic growth alongside your scaling efforts.

Collaborate with other businesses or organizations that can complement your offerings or provide access to new markets. Strategic partnerships can accelerate growth and provide valuable resources.

Regularly review your progress against your growth objectives and be prepared to make adjustments. Use key performance indicators (KPIs) to monitor success and identify areas for improvement. Stay flexible and responsive to challenges and opportunities as they arise.

Clearly identify why you need the capital, how much you need, and what you will use it for. This will help determine the type of funding that is most appropriate for your business (equity, debt, etc.). The first step is the “Investor Ready Assessment”, a detailed set of questions that you answer so that you have a snap shot of where you currently are – and a plan to get to where you want to be.

Familiarise yourself with the Australian Securities and Investments Commission (ASIC) regulations related to raising capital, including disclosure obligations under the Corporations Law. For equity funding, understand the implications of offering shares under the small-scale offerings exemption in the Corporations Law or through crowdfunding platforms.

Update your business plan to reflect your growth strategy and how the capital will be used. Ensure your financial statements are in order, as potential investors will scrutinise them closely.

Obtain a realistic valuation of your business from a financial advisor. This will inform how much of your company you need to offer to raise the desired capital.

Develop a compelling investment proposal or pitch deck that outlines your business model, market opportunity, competitive advantages, management team, financials, and the terms of the investment.

Research and identify potential investors who have an interest in your industry or have invested in similar companies. This can include venture capital firms, angel investors, private equity firms, and sophisticated investors.

Now engage other advisors: legal, accounting and AFSL registered financial advisors to assist with the capital raising process. They can provide valuable advice on structuring the deal, negotiating terms, and ensuring compliance with legal requirements.

Arrange meetings or presentations with potential investors to pitch your business and investment opportunity. Be prepared to answer detailed questions about your business and the market.

Once you have interested investors, negotiate the terms of the investment, including valuation, amount of capital, ownership stakes, and investor rights. This often involves a term sheet outlining the key terms of the deal.

Finalise the investment agreement and any other legal documentation required to complete the transaction, such as shareholder agreements. Ensure all documents are reviewed by legal counsel before signing. Once everything is in order, close the deal and receive the funds.

Before entering the market, ensure your business is Investor Ready. This involves organising financial records, streamlining operations, and addressing any issues that could detract from the business's value. The first step is the “Investor Ready Assessment”, a detailed set of questions that you answer so that you have a snap shot of where you currently are – and a plan to get to where you want to be.

Obtain a professional valuation to understand your business's worth. This will help you set a realistic price and understand the factors that contribute to your business's market value.

As well as corporate advisors to coordinate the process, you will need experienced lawyers and accountants, who specialise in selling businesses of your size and in your industry. You may also need to instruct a business broker if the sale is going to be made public. Your financial advisor will need to tell you how the proceeds will be dealt with after the sale. They will guide you through the process, from valuation to closing.

Before disclosing sensitive information to potential buyers, ensure they sign a confidentiality agreement to protect your business's proprietary information.

Your corporate advisor will have developed a “most probable buyer” list and you may approach companies on that list privately and confidentially. If you are putting the sale to the public through an agent, a broker will use your detailed information memorandum that highlights the strengths and potential of your business, and market it to potential buyers, often utilising their networks to find suitable matches.

Screen interested parties to ensure they have the financial capability to purchase your business. Qualifying buyers early in the process saves time and protects confidentiality.

Engage in negotiations with potential buyers, guided by your advisors. This step involves discussing terms, price, and any conditions of the sale.

The buyer will conduct due diligence, a comprehensive review of your business's financials, operations, legal matters, and more. Be prepared to provide access to necessary documents and information.

Once due diligence is complete and both parties agree to proceed, your legal advisors will draft the sale agreement. This document outlines all terms of the sale, including payment structure, warranties, and indemnities.

With the agreement signed, the sale moves to settlement, where legal ownership is transferred, and payment is made. A transition period often follows, where you might assist the new owner to ensure a smooth handover of the business.