In the fast-paced world of business there are arguably few things that are more important than making sure that compatibility exists between two parties that are interested in partnering with one another. People and businesses have different priorities, strengths, skills and opportunities for growth. These factors must overlap in order to avoid the discord and miscommunication that can derail businesses or make negotiations turn sour. These possibilities can be avoided when either party or both parties strive to identify potential partners that have the same goals and motivations as they do.
In the world of capital raising this is particularly important. When an entrepreneur or business leader decides to seek out more capital to either launch a business idea or expand an existing business it is vital that they are able to communicate their vision and objectives to potential investors. Perhaps a more specific way to discuss the issue of compatibility in the business world is in terms of expectations. Ultimately an investor and the leadership of a company must have the same expectations if the partnership that they are seeking to establish with one another is going to be successful. The roadblocks or difficulties can come when an investor’s expectations are wildly different from the expectations of the company that is looking to raise investment. Consider the example of the political magazine The New Republic. The legacy media publication gained an investor from the technology world who likely expected the publication to behave similarly to a technology startup where business models tend to change quickly. The employees of the magazine might have expected the investor to behave more like a benefactor that subsidized the important work they were doing, an arrangement that is in place at other prestigious magazines. Ultimately the investor ended up parting ways with the publication but not before the majority of the magazine’s staff quit in unison in response to an unresolved conflict. This outcome might have been avoided if both the organization and the investor had established their expectations before entering into a partnership together.
Investment banking firm Madison Street Capital uses its acumen as a financial advisor to ensure that companies that are interested in raising capital are well-matched with the organizations that are looking to provide it. Ensuring that both parties have similar expectations about what they will bring to the table in a partnership is part of what Madison Street Capital does best. The Madison Street Capital reputation for building strong business partnerships is unmatched. Recently the company put its skills to use negotiating a partnership between ARES Security Corporation and Corbel Structured Equity Partners.
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