October 10, 2025, Moscow

HOW TO PREPARE

A COMPANY FOR SUCCESSFUL EQUITY RAISING?

II. Operational track. Part 2

This article is a continuation of How to prepare a Company for successful equity raising? Part 1. .

Question: “How do automation and digital infrastructure support the company’s manageability?”

Business processes and digitalization.
Well-built business processes and a technologically advanced digital environment form the foundation for business scalability. A company cannot grow effectively if processes are fragmented, duplicated, or reliant on “hands-on” management.

For investors, one of the key indicators of maturity is the ability of the company to demonstrate that its operational model is stable, standardized, and prepared for growth without a proportional increase in costs and staff. Companies with chaotic processes and insufficient automation face rising operational risks, reduced efficiency, and slower development.

Companies with advanced management systems demonstrate that processes are documented, optimized, automated, and that digital infrastructure enables real-time management of sales, finance, and operations.

Key elements:

Business processes:
The company documents key processes (sales, production, logistics, finance, HR), defines process owners and areas of responsibility. Regular review and optimization eliminate duplication and bottlenecks.
Automation:
The company transfers standard and routine processes (e.g., invoicing, warehouse accounting, reporting) from manual to automated mode to reduce costs, speed up workflows, and minimize errors;
Digitalization:
The company builds a unified digital ecosystem (ERP, CRM, BI, WMS), where all processes are integrated, data is standardized, and company is managed in real time. Digitalization enhances transparency, scalability, and sustainability of business;
Integration and end-to-end analytics:
The company ensures seamless integration of systems and data: unified directories, master data, BI analytics. The level of integration of processes and digital management tools allows the business to be viewed through a single “window” and enables data-driven decision-making;
Cybersecurity and data protection:
The company ensures information security and business continuity: backup systems, personal data protection, vulnerability testing, and employee training.

Business Processes and Digitalization in the Investment Context

Element	What matters to the investor?	Questions the company must address
Business Processes	Formalization of business processes in key areas	Which processes are documented? Have process owners been identified? How often is optimization carried out and bottlenecks eliminated?
Process Automation	Use of solutions to reduce manual labor and errors, and speed up operations	Which processes are automated? Where is Excel and manual data entry still used? What results (time savings, cost reduction) have been achieved?
Digitalization	Modern IT-systems (ERP, CRM, BI, electronic document management)	What key systems are used in the company (ERP, CRM, BI, WMS, etc.)? How relevant are they and do they match the scale of the business?
Integration and Analytics	Connection between data and processes, single information environment	What is the company’s level of IT-system integration? Can management get data in real time? How uniform and consistent is the data across systems? Are there unified master data and reference books?
Cybersecurity and Data Protection	Security of the digital environment and readiness for incidents	How is data security and business continuity ensured? Is there a personal data policy and contingency plans in case of IT failures?

Question: “Does the management team have sufficient experience, competencies, and motivation to execute the strategy of active growth?”

Management Team and Talent Development.
A strong management team and an effective talent development system are among the key intangible assets, showing that the business is capable of sustainable growth and is not dependent on a single individual. When a company relies entirely on the owner or one or two top managers, any changes in their plans or departure of a key executive become a serious risk for the investor.

A strong team and a structured talent management system demonstrate that the company can grow, adapt, and overcome crises without losing control. Succession mechanisms, long-term incentives, and employee development programs build investor confidence and reduce the risk of dependency on the owner’s personality.

Companies with a high level of maturity have a strong management team with proven experience and results, a functioning succession planning mechanism, systems for long-term motivation and retention, a culture of development, and organizational adaptability.

For investors, this is a sign of institutional maturity: it is not a one-man show but a strong management team capable of executing strategy, scaling the business, and systematically overcoming crises.

Key Elements:

Management Team:
A strong management team has been formed with clearly defined areas of responsibility and top managers with proven experience and industry track record;
Succession Planning and Talent Development:
Systematic succession planning is in place – candidates for key roles are being nurtured, leadership development programs have been implemented, and mechanisms for managerial replacement are established;
Motivation and Retention:
A comprehensive system of employee motivation and retention is in place: short-term bonuses, long-term incentive programs (LTIP2), career opportunities, and engagement in strategic initiatives;
Learning and Development of Skills:
Structured training programs for executives and employees, including executive education, mentoring, in-house academies, with a focus on leadership and digital skills;
Corporate Culture and Organizational Development:
The culture is based on shared values and employee engagement; the company is capable of adapting to changes and transformations through implementation of organizational development practices.

Management Team and Talent Management in the Investment Context

Element	What matters to the investor?	Questions the company must address
Management Team	Balance of roles and professional level of managers	Who is part of the management team? How are areas of responsibility distributed? What experience and key achievements do the top managers have?
Succession Planning and Talent Development	Company’s readiness to replace key management positions without losing control	Is there a systematic succession plan for top and middle management? Who can replace top managers if needed? What talent development programs are in place?
Motivation and Retention	Alignment of managers’ and shareholders’ interests, team stability	What motivation programs are in place? Are there long-term motivation instruments for the management team? How is retention of key employees ensured?
Learning and Development of Skills	Company’s ability to build competencies for the future	What training and development programs are in place? How are the next generation managers being nurtured?
Corporate Culture and Organizational Development	Adaptability and sustainability of the organization in changing environment	What values does the company promote? How is employee engagement measured? What organizational development practices are applied?

² LTIP (Long-Term Incentive Plan) – a motivation tool for the management team and key employees that rewards them not for short-term performance (annual bonuses), but for achieving strategic goals over a 3-5 year horizon. Examples of LTIPs: (a) Stock Options – the right to purchase company shares in the future at a fixed price; (b) Restricted Stock Units (RSUs) – transfer of shares at minimal valuation upon achieving KPIs during a mid-term period; (c) Performance Shares – shares linked to long-term results (e.g., 50% EBITDA growth over 3 years), granted at minimal price upon reaching the milestone; (d) Cash Awards – cash payments after 3–5 years upon achieving company goals.

Technology and Innovation.
At the core of a company’s competitiveness lie its product and production technologies. For investors, these technologies reflect the ability to create a market-relevant product, maintain quality and margins, and drive growth through research and development (R&D). Unique technologies, patents, and innovations in production and product lines strengthen market position of the company and build long-term competitive barriers.

Equally important are the technologies applied in managing the company itself. Modern IT systems, data management, analytics, and cybersecurity ensure process predictability, reduce risks, and enable business scaling. For investors, these technologies serve as an indicator of the maturity of operational model and the organizational sustainability.

A company with a high level of management maturity develops both dimensions:

a strong product with innovative growth;
a management infrastructure that enables scalable delivery of that product.

It is precisely this balance that makes a business attractive to both strategic and financial investors.

Key elements:

Product and Production

Product Technologies and R&D:
Development of the product line through research and development, implementation of new solutions, use of patents and unique technologies;
Production Technologies and Efficiency:
Application of modern technologies in production (automation, robotics, Industry 4.0), improving productivity and product quality;
Innovations in the Product Business Model:
Adoption of new approaches to value creation – service models, digital products, subscriptions, ecosystems;

Company Management

Technological Infrastructure:
Modern IT systems supporting key processes;
Data Integration and Management:
Unified directories, system integration, data quality, and use of analytics;
Cybersecurity and IT Stability:
Data protection systems, backup and recovery plans;
Digital Culture and Skills:
Employee development in technology adoption, data-driven decision-making culture, and strengthening of digital competencies within the company.

Technology and Innovation in the Investment Context

Element	What matters to the investor?	Questions the company must address
A. Product and Production
Product Technologies and R&D	Product development potential, presence of unique technologies and barriers for competitors	What R&D projects the company is working on? Are there patents or unique developments? How will the product line evolve over the next 3–5 years?
Production Technologies and Efficiency	Productivity, cost, and product quality	What modern technologies are used in production? Is there automation, robotics, Industry 4.0? How are quality and costs controlled?
Innovations in the Product Business Model	Ability to adapt to new formats of value creation	Are new business models utilized (services, subscriptions, digital products)? How is client interaction changing? Ecosystem development?
B. Company Management
Technological Infrastructure	Modern IT systems for business management	What IT systems are in place? How integrated and scalable are they?
Data Integration and Management	Data quality and a single source of information for business management	How is data integrity and accessibility ensured? Are systems integrated and is analytics available in real time?
Cybersecurity and IT Stability	Data protection and readiness for IT failures and cyber threats	How is information security organized? Are backup and recovery plans in place? Are stress tests conducted?
Digital Culture and Skills	Readiness of employees to work in a digital environment	To what extent do managers and employees use digital tools? Are there digital competency development programs? How is a data-driven decision-making culture being fostered?

Question: “How responsible is the company in terms of ESG and business reputation?”

ESG and Reputation.
For investors, past financial results the company matter, but it is equally important that the company is able to continue development in a sustainable way. Enter the ESG agenda (Environmental, Social, Governance) and the company’s reputational profile.

A company that ignores environmental, social responsibility, or governance ethics issues faces elevated risks of regulatory claims, fines, and deterioration of public image. In contrast, a business that demonstrates transparency, care for employees, and responsible environmental practices gains advantages in access to capital, negotiations with investors, and customer origination.

For investors, a mature ESG system and a strong business reputation are indicators of predictability and reduced risks – a clear sign that the company is ready to operate according to international standards and to institutionalize corporate behavior practices.

Key elements:

Environmental Responsibility (E):
Environmental impact management systems – energy efficiency, emission reduction, waste recycling, sustainable use of resources;
Social Responsibility (S):
Policies and practices in occupational health and safety, employee well-being, community and client engagement – building sustainable relationships with key stakeholders;
Corporate Governance (G):
Transparency of management procedures, ethical standards, anti-corruption protocols, independent board members. These factors reduce the risk of actions in bad faith and strengthen investor trust;
Reputation and Market Trust:
The image of the company in the eyes of clients, partners, and society – public reporting, independent ratings, absence of conflicts or litigation scandals. Reputation directly influences investors’ willingness to invest and deal valuation.

ESG and Reputational Issues in the Investment Context

Element	What matters to the investor?	Questions the company must address
Environmental Responsibility (E)	How the company manages environmental risks and reduces negative impact on the environment	Is there an environmental policy in place? How are energy efficiency and emissions controlled? What initiatives are implemented to reduce environmental footprint?
Social Responsibility (S)	The company’s position on employees, clients, and community	How are occupational health and safety ensured? Are there employee development and support programs? How does the company engage with communities and clients?
Corporate Governance (G)	Transparency of management and adherence to ethical standards	How are key decisions made? Is there an anti-corruption policy? Are independent board members (BoD or advisory board) involved?
Reputation and Market Trust	The company’s stability and image in the eyes of outside world	Does the company publish financial reports or an ESG report? How is it perceived by clients and partners? Have there been any legal disputes or scandals affecting its reputation?

HOW TO PREPARE THE OPERATIONAL SYSTEM FOR EQUITY RAISING?

Investors look beyond numbers. They need confidence that the company is managed effectively, processes are reliable and scalable, operational system is stable and sufficient to enable execution of growth strategy.

From an intuitive approach to systematic development

A strategy becomes convincing when the company has an operational system capable of executing it. Operational track is not a routine, but the foundation that enables the strategy to be transformed into shareholder value growth. For investors, it is crucial to see the internal ability to achieve the stated strategic goals of the company.

Sustainable growth requires the company to have not only a strategy but also a mature operational system:

Developing operational system requires time and resources.
The operational system is a set of interconnected components – from supply chain and production management to HR systems and IT infrastructure. The company must conduct a comprehensive system assessment based on recognized methodologies, identify bottlenecks and weak links that create operational risks and constrain growth. Since this work takes significant time, it is important to begin preparation well before entering into dialogue with investors;
System improvements must deliver measurable results.
Changes in the operational system should not be about formal processes, but about achieving concrete business results. Owners and investors need to see how transformation reduces costs, increases margins, improves risk control, and strengthens the company’s stability. This requires disciplined execution, monitoring, and control of results; otherwise, improvements may stay only on paper;
Engaging experts in company preparation enhances outcomes.
Consultants help identify risks, propose best practices, and provide an independent perspective. For owners, this accelerates the transformation process, minimizes risks, and brings access to expertise that is hard to replicate internally. For investors, it is a clear signal that the company meets institutional standards and is ready to scale its business.

ink Advisory provides comprehensive support to companies and their owners in equity financing transactions. We speak the language of business and understand what matters most to owners. Our goal is to make the process clear, comfortable, and effective.

Our value for your business in improving the components of the operational model includes:

Business operational System Diagnostics (Vendor Assistance).
We engage and coordinate external experts to conduct Vendor Assistance* – an assessment of the company’s current level of maturity across 8 components, identifying bottlenecks in the most critical elements from the investors’ perspective;
Action Plan for Improving the operational model.
Based on the analysis, we organize development of a concrete improvement plan consisting of 8 components – aligning the company’s strategy and operational model into a single mechanism for growth and shareholder value creation;
Integration of the Action Plan into the Financial Model.
The budget for improving the 8 components is embedded into the financial model, with the effect reflected in forecasts: higher margins, reduced operational expenses. This way, the investors see not only current situation but also a realistic plan for operational model development.

* Note: Vendor Assistance is an independent analysis of the company from an investor’s perspective, enabling identification and elimination of risks before the transaction begins.

Authors

Kudrat Nurmatov

Managing Partner

k.nurmatov@ink-advisory.com

Ruslan Izmaylov

Managing Partner

r.izmaylov@ink-advisory.com

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HOW TO PREPARE

A COMPANY FOR SUCCESSFUL EQUITY RAISING?

II. Operational track. Part 2

Question: “How do automation and digital infrastructure support the company’s manageability?”

Question: “Does the management team have sufficient experience, competencies, and motivation to execute the strategy of active growth?”

Question: “How responsible is the company in terms of ESG and business reputation?”

HOW TO PREPARE THE OPERATIONAL SYSTEM FOR EQUITY RAISING?

Investors look beyond numbers. They need confidence that the company is managed effectively, processes are reliable and scalable, operational system is stable and sufficient to enable execution of growth strategy.

From an intuitive approach to systematic development

Authors

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