Investor Strategy Call – November 9th 2021
Speaker1: [00:00:50] All right. Just firing up the call here. All right. So this is not to here. We’re going to start getting the CFA and everyone joining. So, yeah, see the typical process you have for everyone just joining Chris here just now is just Christmas. So, yeah, just the typical housekeeping zoom chat. Just, you know, if you have a question, just raise your hand. And then after you have, you know, after either you raise your hand or you’re picking a chat, then we’ll bring you up and then help you out. And simply put, whether like, for example, let’s say, Oh, you know, I’m working on a $6 million debt transaction, the investor said. I don’t have enough celery and what do I do next? So just a question like that and then we’ll get to it. All right. Yeah. Just feel free to if you have any question, obviously just either in the chat or. Well, raise your hand and then we’ll bring you right up. All right, I see quotes joined as well, yeah, and don’t be shy if you have any questions. Obviously, that’s why we hear so. Hello.
Speaker2: [00:04:42] Hey, how’s it going?
Speaker1: [00:04:44] It’s going really well. That’s going to be.
Speaker2: [00:04:47] Orders for goods. I had a question around private equity. So a common thing that I hear from from private equity partners and and investment directors is they’re only looking to to back a venture which has a minimum EBITDAR run rate for an acquisition. So typically they’ll say, well, we do invest into buy and build or roll ups, but we need the acquiring vehicle to be a million EBITDA before we consider it. So how would you typically handle that?
Speaker1: [00:05:29] Yeah, interesting. Yeah. This one reminds me of this one reminds me of the deal with the stuff because they wanted his deal to be because his company was doing eight hundred, I think 800 K. And then they’re like, OK, yeah, no, we’ll just eat more equity. But the way I handle it, I mean. Yeah, I mean, that one, you know, because whenever, whenever there are all these equity discussions, then you know, then it goes more onto the own. The onus is more on the owner. Then when it’s more debts or non-recourse, then the onus is this morning acquisition target. That one is more. Yeah, that one is more difficult unless you just grow the team and then gets. And I remember before you were, you’re talking just off line. We were talking about getting assets, quote unquote underneath the company. But yeah, that one is that one’s pretty. They’ve already told you to mandate so that one is pretty stiff. All I would do is just, you know, I’ll just work on bringing other candidates with you in the acquisitions, like if you can partner with any people that come with you in that acquisition. But yeah, that one is pretty. I mean, they’ve told you the mandate right there. I would go more like with private equity firms, be the only path forward or.
Speaker2: [00:06:47] Not no, not the only path, but the it’s kind of a similar thing that I’ve heard from from other investment vehicles like family offices of, say, a similar thing, which is, you know, do two or three acquisitions show a proof of concept and then we’re more willing to look at it. So it’s a case of how you, you know, if your first acquisition needs equity funding or there’s an equity gap, how to how to effectively bridge that gap because oftentimes angels won’t be able to provide enough capital to bridge the gap. So it’s got to be a larger institution, so they’ve got to be a powerhouse or a family office. Venture capital doesn’t really, you know, doesn’t really play in low growth acquisition territory. So those two seem to be the main kind of the main kind of funders who would work in this kind of territory. But it’s a kind of a recurring it’s a very much a chicken and egg situation.
Speaker1: [00:07:50] Yeah, exactly, yeah. Yeah, the only way I can conceptually think of a way is it’s like if if it was like a gap, right? So if there was some sort of gap between the seller finance and then the acquisition company, and if the company didn’t care and then offer terms like publicly offer securities publicly to either via not really crowdfunding, but just offering those terms for people, by selling, by selling the deal I like I like kind of and America. That’s just what I what do we know? But you know, honestly, if the FCA allows for it, selling securities wherever you can and then partnering with somebody to say, Oh, later on, this deal will go public or whatever, but you don’t even have to make any agreement for going public, just an introduction to something that could take your public and just sell the securities to via either crowdfunding or something like that to raise that equity so that it’s in between. That’s the way I would do it. And. I mean, that’s one way. Yeah. If it must go to that direction, I’m sorry.
Speaker2: [00:08:48] Could I cut you off?
Speaker1: [00:08:49] Yeah, no, no. Another way to would be just to see if you can target other sellers that already run companies that are, quote unquote eBay, that positive and they want to exit it anyway. So I mean, if it’s kind of weird, but it’s like it’s like if you can find if you can find like another seller, I don’t know if you if you like, consider this practically, but if you can just find another seller and they’ll be willing to take the majority equity
Speaker3: [00:09:19] And then
Speaker1: [00:09:20] Let them be the person to acquire the other deal. So it’s like you and then another seller, and then it’s the target company and then see what the equity people say there. Then it’s like, Oh, you just formed like a new company after the acquisition. I wonder what they would say to that.
Speaker2: [00:09:34] Yeah, so you’d basically be rolling up onto somebody else’s vehicle.
Speaker1: [00:09:38] Potentially because it seems to solve the problem of, oh, let’s see what you’ve done in the past, well, it’s like, OK, well, let’s say there’s a company that already has X revenues and whatever. So that’s one, but two is like, if you’re if you can actually just get people on your board or get people, quote unquote on your team. You know what I mean? Just what people do, just get have have any agreement where you’re not paying anything out of cash for people to be on your team and then just say the argument that, OK, these are the people on my board or on my team that have X amount of experience. And I’ve done this longer than you and Mr. Private Equity Person or Mrs. Because there are
Speaker2: [00:10:18] Women. So, so so I did that. I’ve got my sector, I’ve got guys who who run businesses, you know, 50 million turnover, and I’ve got the ex managing director of two private equity funds on my board as well. So we have the experience, but it’s irrespective of that. It’s still the narrative of what you’re acquiring vehicle. You haven’t done it with this particular vehicle and this particular team all has one together. So I don’t know if they’re using it as kind of a get out clause, but or maybe they’re just mandated by their investors that they have to stick to specific criteria, but it just seems to be a common kind of thing. So it was even the private equity guy on my board. He’s very well connected with family offices, and even he was getting the feedback when he approached them directly.
Speaker1: [00:11:11] Interesting. Yeah, I’d be curious, I’d be curious like on that objection, if if you come back to them and then and then if you were if it was something like, oh, getting a seller to whether he has a company with eBay and everything, it’s like, it’s like, what about somebody like that? Because I’d be curious to see if that’s the real objection. And are these all UK based types or the American or where?
Speaker2: [00:11:36] Most of the UK, for now, I’ve spoken to some European ones based in Belgium, Netherlands, so they’re more global in their focus as well, and they do look at US acquisitions and funding, so.
Speaker1: [00:11:51] Yeah, because the one I’ve seen was the one that I’ve seen was was when the company doesn’t have the history that they want. The one I’ve seen is when they they just tell the person, Oh, we’ll just take most of the company and we’ll still do the deal, but we will just take most of the company. So I haven’t really seen a complete objection in that sense. But then if there is, then I’ll just play over the objection and say, OK, listen. And it’s not finding sellers is generally speaking, we believe it can be easier than finding the money. So we would just like, see like, OK, what are the sellers? Are there convincing the seller to come alongside it and then having put their name in front of everything? And you’re more in the back of it and seeing what they’ll say for something like that. I’d be very curious to see what the objection would be.
Speaker2: [00:12:40] Yeah, yeah. Yeah, I guess full, I guess it kind of depends on the seller willing to to to use their vehicle for acquisitions. Yeah, which is, you know, that’s the different hurdles across.
Speaker1: [00:12:56] Yeah, it is it is, because. Because then, yeah, then you’re doing a bit of acrobatics because then then the goal would be to. You know, typically they would say, Oh, we’ll be in a deal for X amount of years after you’re gone and. It’s as if you have to just tell them directly without the other being as as aware of it. And so, you know, but it’s really, yeah, really, I think. I think rather than do that, that would be like a backup idea rather than do that something that’s more practical. I would just. Talk to more debt providers because. You know, it’s less. You know, if they’re hard assets and if hard assets can be added to the deal, it’s just more of a straightforward thing where to focus less on the principal and more on me and more on the actual acquisition target, which can alleviate a lot of pressure in the first place. So I guess it can be better to prevent it than to just go up against a fight that is not even worth fighting and trying to convince these people that resistance anyway.
Speaker2: [00:14:02] Yeah, that’s what I’ve been doing, so so looking for asset heavy businesses. Yeah. Yeah. Ok. Understood.
Speaker1: [00:14:11] Thanks. Yeah, no worries, no worries. Any more questions?
Speaker2: [00:14:17] I think that’s everything on that side.
Speaker1: [00:14:19] Yeah, and matter, do you have any additional thoughts there? Um, nothing really got it.
[00:14:30] Sounds good. All right.
Speaker1: [00:14:37] See A-Day, Chris and quotes see quotes here to listen. You know, just feel free. We’re still here. So just raise your hand or if you have any item to walk.
Speaker4: [00:15:17] Little Eddie. I need to. How are you guys doing?
Speaker1: [00:15:21] Hey, doing good, man. How’s it going today?
Speaker4: [00:15:24] Not bad. Kennedy is not here today.
Speaker1: [00:15:28] Yeah, yeah, this is great. He may join too, but we’ll see.
Speaker4: [00:15:33] Ok, because I think the last time I joined, I think I made reference to ground as being very good. Yeah. Need. I need to walk that back. What are they doing now? I’m sorry, if you can. Yeah, because my experience has not been so great. So what? I think the only focus on the US market. Oh, good. Yeah, I can’t. I can be the investment entity. I can’t offload the investment entities addressed so I can put the banking details because everything is linked to the US and they couldn’t fix that for the past three weeks. I just wasted my time.
Speaker1: [00:16:23] Ok, got it, got it, and so remind their functions, so they’re kind of like a like a for, I think, for these real estate.
Speaker4: [00:16:37] Yeah, they just like investment, I mean, investors invest where you could communicate with investors, they could come on, signed the subscription agreements, whatever agreement they have more or less like a data room to the deal so they can review the deal. They can show their interest and all that, and you can always communicate with them if they sign on. Everything is more or less document them on the on the on the platform. But I’m struggling to get that get that running for the past three weeks that I signed on, and so I just send them an email. I think on Saturday, you guys just sent me my money back. Enough of this? Yeah.
Speaker1: [00:17:23] Yeah. Like, you know, like raising the homeless. Like, we’re kind of minimalist. I mean, we’re just like, I mean, if you can just get this subscription agreement, DocuSign, Google Docs and then and then it works like even though it’s not sexy, but it works, right? I mean, that’s what we recommend, because that’s what we understand. But anything above that, it’s more it gets more complex there, right?
Speaker4: [00:17:47] So yeah, I’ve learned my lesson. I mean, I wanted to tell kids that, OK, this is because I know the last time I spoke, I think I was more or less selling gum breaker right now to sell. No.
Speaker1: [00:18:07] Yeah, it’s it’s on a record. It may work for America, but maybe it’s not a thing for Canada, right? And and that goes beyond the scope of what we do because we’re just like, we just know how to do like the the legal, the subscription and then DocuSign and then that’s it and then Google Docs or Dropbox, whatever. And then if the investor wants something fancy, then then yeah, we can. We can look at what we can do. But it’s not really any magic here. This is a piece of paper.
Speaker4: [00:18:38] Yeah, yeah, absolutely. Absolutely.
Speaker1: [00:18:42] So. So what is the next step that you feel you would take from here? Are you going to?
Speaker4: [00:18:47] Yeah, I would just probably just use Dropbox. I just use Dropbox if somebody is actually really interested. I mean, we are not dealing with 200 investors or 15 investors at this point. So my on this deal is probably just going to be like 10. So if somebody is interested, I’m sure that they OK with Dropbox.
Speaker1: [00:19:11] Yeah, because I think the real thing was really more for the fund administration, right, like the actual is more. You know, is that what Groundbreaker does also?
Speaker4: [00:19:23] Uh, they do a bit of that, but I think that’s just trying. They’re still more or less trying to get a system up and running properly. I think there’s more or less a lot advanced with better testing. Oh, that’s a hard field because there’s certain things I should be struggling with, like trying to upload your choice to be in the particular site and all that. No, nobody wants to go through that stress. I should be able to just adjust it without having to go and reduce the quality of my picture or my whatever image I want to upload as a brand, you know. So I think they still have a long way to go. In my experience, though.
Speaker1: [00:20:08] Yeah. Well, this is a good product feedback here. So, you know, I’m not I’m not a real estate like I’m not a real estate tycoon or anything. But I mean, all I’m saying is like, it’s like landing page. They often email subscription agreements, you know, DocuSign and then that’s it. Wire the funds.
Speaker4: [00:20:26] And then and then that’s exactly what we’re trying to do. We’re just trying to get a clear landing page and get them to a page where they could just get everything done. Know where more or less having like the DocuSign so you don’t have to download anything on Dropbox, you can just sign anything, everything online. That was what I was trying to do to make life easy. You don’t have to download anything I read through. If it’s something that you like, sign, invest and move on. I think we might. Yeah, you just take a step back and strategize on that. I just use Google Dropbox right now. That’s that’s what I’m just going to focus on.
Speaker1: [00:21:13] Yeah, I mean, Cambridge Wilkinson, they closed one billion last year. Did they just drop Google Drive? It’s like it depends on the deal. But but I’m more biased, but I’m more we’re more biased on the side of simplicity, right? That’s why we’re we’re more minimalist. But but so do you need any assistance when it comes to the DocuSign or a website or which where you have in that sense?
Speaker4: [00:21:41] I’m not sure if I need help on. Probably, yes, I’ll say yes, I’ll say yes, I don’t want to say I don’t realize that I do. I’ll say yes. So maybe I don’t know when your team might be available to help me with that. So we run through it any time. Just let me know what time is more convenient for you guys.
Speaker1: [00:22:05] Yeah, no good. I mean, we have all the standard operating procedures, so we just have to delegate it to one of the one of the. And obviously this is this is on us, it’s on the house. But yeah, we have one of the we have all these instructions like step by step and then we just get them to follow it and then we’ll start that whole feedback cycle there.
Speaker4: [00:22:24] Okay. Thanks. Yep, yep, no worries. We’ve got this subscription agreement in place, which is the main thing that you want. Anybody that wants to come on board, be able to sign up from the LPA, you know, the men, the men, the MEN government is the subscription agreement. I don’t see anybody having to print something and signing it to just be signing DocuSign, you know?
Speaker1: [00:22:53] Exactly. And this is not brokered. There’s no there’s no exempt market dealer. Is it just you?
Speaker4: [00:22:58] You just become. No, no, no, no, no, no. Just focus primarily on accredited investors. Yeah.
Speaker1: [00:23:06] Yeah. Yeah, this looks like the work. It’s OK, yeah, we’ll go through maybe a today’s Monday, I think so. Yeah, maybe by the end of the week, we’ll be able to get near completion. But yeah, something like that and then we’ll be able to get that moving there.
Speaker4: [00:23:22] Okay. Thanks.
Speaker1: [00:23:24] No worries. All right. So we see Chris and Coats. You just hear of any any questions, ideas, insights. No problem, if not, but we’ll just hang out for just a couple more minutes and then if there’s no any additional questions just in case somebody thinks of any, you know. Question they have from have instead of.
Speaker4: [00:24:33] By.
Speaker1: [00:24:59] Ok, so Colt is asking, is it common to take a retainer if an exclusivity agreement is signed? So is it common to take a retainer if an exclusive? So if you can just help me know the parties like the players in the game, the parties are involved. So take a retainer. So it’s OK for you to take a retainer from who from. From the company that’s raising money or from an investment bank or which.
Speaker4: [00:25:40] I understand that question, I think got our own.
Speaker1: [00:25:45] Ok, so like if. If it’s OK to draw an investment bank to. Ok, so you’re talking about finding somebody to raise capital on your behalf. After you’ve signed an exclusivity agreements with with. Yeah, I think I think I just need to be sure people involved
Speaker4: [00:26:10] Not understand that. Most think most, most countries, if it’s exclusive, they are going to take a retainer to be British because are no guarantee, but they’re saying, OK, 90 percent of you are likely to deliver. You know, it’s likely to help you to the. But if it’s not an exclusive deal, of course, they still not require a retainer, but some don’t. Some just based everything on success, and the success will be higher and some require written, which actually fee is a bit lower or the return is deducted from the sort upon closing.
Speaker1: [00:26:58] Yes. Fair enough, because like I’m going to I’m going to go over the assumption that this is like somebody who’s raising because the only thing that I’d be pretty apprehensive when. Because because I mean if. If they don’t take you anywhere and then the retainer is huge, like if you’re talking one hundred thousand or if it’s huge like that, then then what they’ll do is they’ll lock you into something where you can’t talk to anyone else and you’re depending fully on them. Yeah. And then you’ve taken one like a lot of money out and then the deal can die, especially if it’s an M&A deal. So that’s the only thing I’d be apprehensive about. I’m more of the fan of like, I think with all of us in general, like we’re more in the side of unless this is like a, you know, a Canaccord or JP or something like that, unless you’re like a tier one. Like, we’re more fans of nonexclusive because because then you’re free to also raise capital from other people, if that company has something happens to it. Because I mean, we’ve seen like we’ve seen like one of the other members, like they used a firm. It’s unfortunate it’s happened, but they used a firm charge two hundred thousand and then it was the same thing and then no results. So we’re really apprehensive about exclusivity. Yeah, unless unless they’re tier one, we’re really apprehensive about exclusivity there. A lot of people that that would take that would charge retainers and they wouldn’t do exclusivity. You know, they’ll do non-exclusive or best every time.
Speaker4: [00:28:30] But OK, so how do you? I did manage that if you’re trying to raise money and it’s not an exclusive event is exclusive, there’s no guarantee and everybody’s asking for some sort of due diligence fee or retainer and all that, and there’s no guarantee of, Oh, I’m going to have to raise this money. It’s a done deal. Just had people come. I’ve had people. I think I actually posted that on the mastermind group. I had somebody actually reach out claiming to be representing some family office. This was about maybe four months or five months ago. Yeah. And this is after wasting my time for about forty five minutes or so is going to cost me about eight thousand dollars for you to make an introduction. Not that you’re actually going to do the work. It is just to make an introduction. Yeah. Yes. So I told him, I told him this is what he should have started with. He should have started with the feet instead of just trying to bamboozle me to signing something with you because it makes no sense for an introduction or to say you’re exempt from any of these. They should be paying you if we are sourcing them. The sourcing deals for them. I should not be the one to pay you. I should pay you on delivery, on closing. Or if you want me to pay something to show a level of commitment, it shouldn’t be something that’s reasonable, not something outrageous as it came for an introduction.
Speaker1: [00:30:13] So you said 88000, not eight thousand eighty eight thousand three.
Speaker4: [00:30:17] No, it’s eight. Yes, it’s crazy. $8000.
Speaker1: [00:30:21] I haven’t heard of anything like that, that’s the same.
Speaker4: [00:30:24] I know. I wish I recorded the call. I wish I recorded the call. It was mean. I was. I was outraged.
Speaker1: [00:30:34] Yeah, that’s that’s ridiculous, so. I mean, it all comes down because like this is the thing that we say, because it’s like we say for people to have the three ways that people recharge, right? It’s like the cash. So it’s obviously how much cash like for marketing, for ads or whatever. For consultants like, there’s like an amount that the company would budgets for a capital raise. And then there is the amounts of obviously the success of that company is willing to budget. It’s like if a company doesn’t want to give more than six percent, then we recommend, like cumulatively, it doesn’t go over six percent. So then it’s a success fee. And then there’s a warrant. If the company goes public, it’s like, what’s the max amount of warrants that a company would be willing to give out broker warrants. So like if you go public, what options would you give to people to take a part in your deal? And then there’s there’s equity, but there’s not that much equity share in this type of work. So but my my point is like the thing that we recommend is like is like if people just bunch of everything beforehand and then they also determine if they would rather have non exclusivity versus exclusivity. So that because the point is like, we want to we want to get the person in control right, rather than somebody, you know, take over their deal and then they have no control over their calories. So it can be OK for people to hit investors directly and also work with the consultants. If there is a retainer or it’s only success or whatever, if they can budget for it. But the point is like if it’s outside of the budget, then it’s just a waste of time. So, yeah.
Speaker4: [00:32:06] And besides that, I mean, I know it’s six percent, five percent seems to be the standard, but at least I know someone that would actually raise for such a fee of two percent equity. Would help to raise at least two percent. You know, so it all depends on who you’re talking to, some people are very reasonably just, OK, I’m going to help you through this. I can. I can. So I’m more or less trying to build our relationship because it’s more or less like a referral business if the true nature is good to me. Definitely. If it comes across my desk, all I can think about is nature. Because nature is my guy, I can always introduce somebody to me. So I think that’s the old logic of people that are not charging as much as six percent. They don’t want to be a just one man, just one transaction that they want to have multiple transactions with with the same clientele.
Speaker1: [00:33:09] Yeah, and something else I’ll look at to is like Elliot’s after we’re seeing this. I mean, if there’s like a niche that they have, if they see an industry agnostic, you know, unless unless they they’re like a Tier two investment bank or a Tier one or they’re reputable big investment bank, then I don’t see the points of their industry agnostic because it’s really hard to be industry agnostic if you have no niche for it. So that’s something else I like to have within about. You can see if they’re serious, if they just focus on one type of even if it’s acquisitions or if it’s funds, or if it’s like hospitality or whatever, if they have a niche, then they can be better. The difference is everything, even African crypto, where they take everything. Then there’s something. It’s like, OK, I don’t take it if they paid them a hundred thousand. Yeah. Just so. I think that’s I think that answers your question. So. All right. Hello. Yeah, we can hear you. How’s it going?
Speaker4: [00:34:32] Yeah, is asking is different?
Speaker3: [00:34:38] Do you see the chart? Yeah, yeah. Um, yeah, sorry. Just walk out the door there, but yeah, it was, it’s kind of for me because I’m focusing on a few things right now. And for me to dedicate my full time or fundraising to this UFC deal, I kind of like to ask them for a retainer. So I can make a living plus pay Vas and et cetera. Yeah.
Speaker4: [00:35:13] I, in my opinion, it’s I think it set up costs would be more ideal and. It’s more or less it should be the cost they ensure there shouldn’t be anything extra on it and it comes back that out from your your set up costs, whether the set up costs, let’s say, one percent, whatever percentage you so you back out the vehicles on any cost that you can cure along the way. But everything has to be cost if you want to. I don’t know. Some people do it like you’re suggesting some people do exactly what I’m saying in terms of just Beutel because I’m backing out at closing, you know, so if the company has some cash flow, you know they should be paying for everything that you’re incurring. Uh, if you’re going to charge them for your time as well, you can say, okay, for my time, this is what you’re going to charge them for that two dollars, well, that’s twenty dollars, but let it be the costs. Let it not be like a fee. So, you know, obviously we’re charging organization fee, you’re charging setup causing you’re charging acquisition costs. It scares people away. That’s that’s that’s what I know anyways. So that’s what I’m saying that,
Speaker1: [00:36:45] Yeah, Eddie was on the other side of it. So I mean, if I can, if can say to you, I think I think the point to that is relevant. I think it’s just about the value that you’re adding, right? Because, for example, I understand that you help them with their financial models and you like like, I mean, obviously the matter and everything. But then you’re the one who is the person who gave them that information. So my point is like, it’s like, I mean, it really is just based on the value adding, like if you’re adding value to them, then like I’ve seen people that what they do, they start flying all over the place and stuff. And then they they charge people fifteen thousand or one hundred thousand just to fly all over the place and not actually do any due diligence. And but as long as you’re actually like, if you have a cost with diligence, if you actually do the due diligence and actually build the valuations, then I think it’s more, well, warranted. And then you can actually put those line items on and in proof of receipts and everything. But I think beyond that, I think if you were to set that expectation earlier, I think it would have been really appropriate. But it seems like the you’re a bit late in the setting that expectation they may be, you know, what do you think?
Speaker4: [00:37:58] And is the ordeal called, is it your deal? Are you the one driving the deal? Are you the sponsor of the deal?
Speaker3: [00:38:04] It’s not my deal. This deal is a big play. It’s. It’s kind of like in a very early point in the game right now, so they don’t even have all their partnership agreements put together, and they have me kind of working here based on a friend of a friend who’s who connected me, who is very, very, I guess they went to school together. So that’s how I’m in early and I’m already working on it. And I did talk to my connection who who has gone to school with him. And he says, you know. Like, I mean, I have a really good relationship with them, and that scarcity attitude kills more deals than anything else. So he didn’t really want me to. To try to secure anything, so I just kind of stayed like this, but I’m hiring a VA and I got an expensive data room, which I don’t need to have, but I also, I believe, like the marketing message said not to and I wrote together, like for pretty much just him, the marketing message that we’re going to send out on emails is very compelling. And I could be wrong, but I think it’ll look a lot of calls.
Speaker1: [00:39:16] Oh, yeah, I think I think it will, too.
Speaker3: [00:39:20] And I’m going to be busy, I’m going to be so busy on sales calls making nothing to do it, which I would say, I mean, down the road, it’s amazing if it pans out, but right now I’m kind of in a situation where it needs to make money.
Speaker4: [00:39:35] Yeah, well, they have to pay for the service. Absolutely.
Speaker1: [00:39:39] Yeah, you can. You can do it based on and I think something you can do based on to de-risk and you can do it based on small milestones, too. I’ve seen some agencies what they do, they will do it based on calls booked. A lot of them would do it. There are different ways of doing it. The one I see is like paper records, books and once you start getting all these calls, then it’s like Pay extra calls, books we can pay X for request for. You can pay for term sheets delivered because those are clear milestones that help and plus this company they haven’t even set up. I mean, they haven’t set up the investor documentation. So I mean, if you can advise them and send that up as well, then that’s an exchange of value, right? Rather than just an arbitrary blank cost for quote unquote capital of reason, then debate. I think if you just align it with the. With their milestones, then you’re in a good position.
Speaker3: [00:40:34] Ok, that’s not a bad idea, yeah, OK.
Speaker1: [00:40:37] Because you may make more money if you do it based on book calls, and then they may start digging into the Typekit of then we can because then you can. I’ve seen people make more money that way. And then even a flat fee.
Speaker3: [00:40:49] Yep. Yeah, that’s the good idea. Yeah, I expect there to be a lot of calls. Hopefully, I can sell it and not need too many, but.
Speaker1: [00:41:01] Yeah, hopefully, and just last piece, yeah, know, just advice like we don’t own a law firm or anything yet, but it’s just to advise on making sure that that site is that site is understood because it doesn’t seem to there doesn’t seem to be. It looks like it’s more of a business partnership. Friends and family exemption type of setup rather than like a securities offering, right? So that looks like the. So do you want to partner with us? It doesn’t look like it’s like a securities offering, it looks like it’s more of like a business partnership type of exemption under the FCA because of the 40
Speaker3: [00:41:36] I think you’re on. I think that’s right.
Speaker1: [00:41:38] Yeah, yeah. So then that’s the angle that seems to be rather than like, would you partner with our business just if you can see that? I did.
Speaker3: [00:41:50] I did send him an email and said, I’m not doing any more reaching out until we have a subscription agreement made up. And everything up to that point is done because I just rather not sour valuable relationships. And, you know, he’s sending me documents and on. So I don’t he didn’t say anything about that, but I think he’s OK with that.
Speaker1: [00:42:10] Good. Yeah, because the documents seem to be more about partnership, whatever type of because the point is like an investor can’t invest until there’s something for them to write the investments on. And in the interim, the investor will be sitting in in purgatory, waiting on a deal to move ahead. Right.
Speaker3: [00:42:28] And I’m glad you said something to me because I would probably be the guy to go out there and make a million calls and then have a million people in my inbox saying pissed off at me or whatever. It’s like, Let’s go. Yeah, OK, yeah, there we go.
Speaker1: [00:42:40] So then, yeah, let’s just load our bullets properly, because once you lose those investment bullets, they’re gone forever. So as long as we have those bullets stored up and then when it’s time to go, if they’re ready and then then there’s that.
Speaker3: [00:42:51] And I did send him the exact list of all the things that we needed for our data room. And he says most of this will come from the shareholders, and he’s gone off to get that. So.
Speaker1: [00:43:01] Interesting. All right, there we go. Good, you can expect something for nothing that’s good.
Speaker3: [00:43:09] Yeah.
Speaker1: [00:43:15] All right. So. Yeah, and wouldn’t have anything to add, I see Christmas here as well. Obviously, any questions, anything? So we’ll leave it for a couple of minutes, for three, three minutes or so and then see if there are any additional questions and if not, no worries, then we can just see you on the next call. All right, that seems to be seems to be nowhere and no more inquiries, but we can leave it like that. So everyone appreciate the correspondence. Yeah, our next one is Wednesday at 11 a.m. New York time, and yet we’ll have to see if he is there as well, so it wouldn’t have a good rest of the evening. Thank you. Thank you. Cheers.
Speaker4: [00:45:53] I need some.
Speaker1: [00:45:57] Yep. How’s it going?
Leave a Response