September 22, 2025, Moscow

HOW TO PREPARE A COMPANY

FOR SUCCESSFUL EQUITY RAISING?*

I. Strategic track. Part 2

This article is a continuation of How to prepare a company for successful equity raising? (Strategic track. Part 2) .

Question: “Are the company’s strategic goals aligned with market dynamics and technological trends?”

Strategy and Implementation Plan. The next step is to define strategic goals and develop a roadmap for achieving them. For investors, it is important to see not only ambition but also how it will be translated into a concrete action plan.

Strategic foundation of the company
Vision	A clear understanding of the company’s envisioned future position in the market, which competitive positions it aims to secure, and what key sources of competitive advantage (quality, service, cost efficiency, brand) it will rely on.
Goals	Specific and measurable targets: target markets and segments, market share in the target markets, key financial indicators (sales, EBITDA, net income, ROIC).
Implementation plan (road map)	Sequence of initiatives and projects: priorities, milestones and timelines, responsible parties, resources/budget, key dependencies and risks, control metrics, and scenarios.

Strategic vision and goals – the foundation on which the investment appeal is built. They must be clearly linked to the results of market analysis – its opportunities and threats – and to the business model and the company’s current state, including its strengths and weaknesses.

Investors evaluate not only what the company has achieved in the past, but also how convincingly it articulates its future. It is important for investors to see a clear and realistic vision of development: what position the business intends to occupy in the market, through which competitive advantages, and what specific goals the owners and the team set for themselves.

Strategic vision and goals usually include the following five key interrelated components:

Market position and growth ambitions: target markets (segments) and the target share in those markets (segments) that the company plans to attain within a 5-year horizon. It is important that these goals correspond to the market life cycle;
Competitive advantages: the factors of competitive strength through which the company intends to secure and strengthen its market position – product quality, reliability and speed of execution and delivery, cost efficiency, level of service, strength of the brand;
Product and technological development: directions for expanding the product line and developing new technologies that will ensure differentiation and margin growth;
Financial targets: target levels for sales, EBITDA, margins, Return on Invested Capital (ROIC), and Free Cash Flow. These goals define the level of ambition and serve as a test of the economic feasibility of the strategy (in conjunction with the financial model);
Increase in equity value: indicators of shareholder value and returns to the company’s shareholders at an acceptable level of risk.

Systematic goal-setting strengthens investor confidence: the company manages its future not intuitively but based on data; its goals are interconnected and economically sound.

Strategic Vision and Goal-Setting in the Investment Context

Element	What matters to the investor?	Questions the company must address
Market position and growth ambitions	Clearly defined target markets or segments and the expected market share within a 5-year horizon	Which markets or segments are priorities? What share does the company plan to attain in the target markets? What position relative to key competitors does the company intend to occupy?
Factors of competitive advantage	Understanding which factors will strengthen the company’s position – quality, service, brand, etc.	What will constitute the company’s key advantages? Which competitive advantages are already proven, and which ones are planned to be developed? What are the goals for them?
Product and innovation development	Directions for expanding the product portfolio and introducing innovations that ensure differentiation and profitability	What new products or technologies are planned to be introduced? How will they change the revenue and profit structure? How will expansions of the product portfolio impact the competitive position?
Financial targets	Goals for sales, profitability, EBITDA, ROIC, and FCF	What financial targets has the company set for 5 years? What are the assumptions behind them?
Creation of equity value	Understanding of how the strategy will lead to growth in company value and shareholder returns	How will the strategy impact shareholder value and returns? What value creation mechanisms are embedded in the strategy (sales growth, profit growth, increase in valuation multiples)?

Strategy Implementation Plan (Roadmap). If the strategic vision and goals define the general direction of development, the roadmap shows how the company plans to implement its strategic intentions. For the investor, the roadmap demonstrates that the company is capable of managing growth, not just declaring ambitious goals.

The roadmap describes the path from the current state to the target state, outlining the sequence of initiatives and programs, the required resources, and the key control points. It reflects not only investments and organizational changes but also the system of priorities.

Key components of the roadmap:

Priorities and phasing.
Step-by-step implementation of the strategy across 0–1 year, 1–3 years, and 3–5 years, allowing short-term achievements to be balanced with long-term projects and goals;
Business model transformation / strengthening
Identification of blocks (in BMC terms) for transformation or strengthening: new segments and products, sales channels, cost structure, etc.;
Growth paths
Will the company achieve its goals through organic development, M&A transactions, or a combination of both?
Projects and initiatives
Programs to improve the quality and stability of the customer base, modernize production capacities, enhance operational efficiency, enter new market segments, update products or services, develop R&D and introduce innovations, digitalization, etc.;
Organizational development
Strengthening management team, introducing new management practices, improving interaction and teamwork;
Management system
Implementation of projects to improve management systems, including automation, structural changes, etc.
Resources and budget
Financial resources, competencies, and technologies required for strategy execution;
Control and monitoring mechanisms
A system for managing strategy execution: control points, progress metrics, scenario planning, and strategy adjustment in light of external circumstances.

A detailed roadmap shows how the strategic goals will be achieved: specific programs, required resources, and management system. From the investor’s standpoint, this is a proof of the readiness to scale. It also improves confidence in the company’s ability to achieve its declared objectives.

Strategy Implementation Roadmap in the Investment Context

Element	What matters to the investor?	Questions the company must address
Priorities and phasing	Understanding how short-term and long-term goals are balanced and the sequence of strategy implementation	How are strategic priorities distributed across 0–1, 1–3, and 3–5 years? Which projects are most important for short-term growth, and which are aimed at long-term development?
Business model transformation or strengthening	Understanding which elements of the business model need to be transformed or reinforced	Which business model blocks require changes and how will these changes take place? How will this affect scalability, margins, and company stability?
Growth paths	Planned instruments for growth – organic development, M&A, or their combination	What role will organic growth play in strategy execution? Are there any M&A deals in the pipeline? What types of deals are being considered?
Projects and initiatives	Projects and initiatives the company will implement to achieve strategic goals	Which projects and initiatives will serve as growth drivers? Which will focus on efficiency improvement? How will they affect customer base quality, sales growth, and profitability?
Organizational development	Readiness of the management team and corporate culture to scale the business	What changes are planned in the management team and corporate culture? How will the company ensure effective management of a growing business?
Management systems	Maturity of the company’s management processes	What projects are intended to improve management systems? Are new control tools and digital solutions being introduced?
Resources and budget	Understanding which financial, human, and technological resources are linked to the strategy	What resources have already been allocated? What competencies and technologies still need to be introduced? How is the budget structured?
Control and monitoring mechanisms	How the system for executing the strategy will be structured	What KPIs and control points are established? How is progress tracked on strategic initiatives, and how does the company respond to deviations?

Financial modeling is a tool that translates the company’s strategy into figures and allows the investor to assess whether the declared goals are achievable from an economic perspective. For the company, it is a “stress test” of the strategy: the model shows whether it withstands realistic development scenarios, ensures growth in shareholder value, and provides sufficient returns for both founders and investors.

Key principles of a financial model:

Transparency
the model must be structured and clear to the investor, with well-defined assumptions and logic;
Integration with strategy
all initiatives in the roadmap must be reflected in the figures;
Focus on cash flow
cash flows are more important than accounting profit;
Realism
assumptions must be comparable with industry data and benchmarks;
Flexibility
the ability to quickly adapt to changed inputs.

Key components of a financial model:

Sales: growth drivers by segments, customer groups, and products; the impact of market factors and strategic initiatives;
Cost of Goods Sold (COGS): direct and variable costs, contribution margin, gross profit, and gross margin;
Operational expenses (OPEX): commercial and administrative expenses, EBIT, EBITDA, and net profit;
Capital expenditures (CAPEX): investments in capacity, equipment, technologies, R&D, digitalization, payback periods, and impact on business scaling;
Net Working Capital (NWC): changes in inventories, accounts receivable and payable, NWC requirements;
Capital structure and debt level: Debt/EBITDA, cost of capital (WACC), availability of financing, and the ability to service debt;
Financial statements: balance sheet, income statement, cash flow statement (sustainability of FCF generation and ability to finance growth and pay dividends);
Investment value and return on capital: DCF, ROIC, IRR, EV/EBITDA multiples, sensitivity of returns to key drivers;
Scenario modeling: base, conservative, and optimistic scenarios, analysis of the impact of market shocks and strategic decisions.

For investors, the financial model is the key to understanding the economic logic of the business: it shows how well the strategy is supported by figures and what level of return it will provide to shareholders.

Financial Modeling in the Investment Context

Element	What matters to the investor?	Questions the company must address
Sales	Scale and realism of growth, connection with market / strategy	How are sales forecasted? Which segments will grow? What are the sales drivers?
Cost of Goods Sold (COGS)	Structure of direct and variable costs, gross margin level	What are the company’s cost drivers? How does the contribution margin and gross margin change?
Operational expenses (OPEX)	Sustainability of Operational efficiency, EBITDA dynamics	How are commercial and administrative expenses planned and controlled? Does the EBITDA grow?
Capital expenditures	Justification of investments, payback, contribution to growth	Which projects require CAPEX? What are their ROI and payback periods?
Net Working Capital (NWC)	Working capital needs and liquidity	How are elements of working capital changing? Are there enough resources to cover NWC?
Financial statements	Financial condition and dynamics of the business	What are the trends of key balance sheet, P&L, and cash flow indicators?
Cash flows	Ability of the business to generate sustainable free cash flow	How is free cash flow (FCF) formed? How sustainable is it under different scenarios?
Capital structure	Capital structure and ability to service obligations	What is the Debt/EBITDA level? How does leverage affect cost of capital?
Capital returns and efficiency	Potential IRR, ROIC	How effectively does the company use capital? What returns will investors and founders receive?
Scenario modeling	Stability in times of market changes, adaptability of the strategy	What development scenarios are considered? How does the business perform under stress tests?

Risk Analysis
When developing a growth strategy, the question arises: what factors could hinder its implementation, and how prepared is the company to operate in uncertainty? For owners, this is a familiar part of business, but investors want to see that potential risks are not ignored, but built into the company’s management system.

Risk management not only reduces the perception of threat, but also builds investor confidence that the company can adapt to a changing environment and remain stable even under unfavorable scenarios.

Key components of risk management:

Market and competitive risks
linked to changes in demand, price competition, new entrants, and technological shifts. The company mitigates these by monitoring segments and consumer trends, and by adapting pricing, product portfolio, and sales channels;
Operational risks
arise from supply chain disruptions, dependence on specific counterparties, and production bottlenecks. They are minimized through supplier and customer diversification, backup capacities, and quality control;
Financial risks
include rising interest rates on loans, increasing leverage, and currency fluctuations. These risks are managed through stress testing, debt level policies, hedging, and working capital control;
Legal and regulatory risks
are linked to changes in taxation, licensing, and industry regulations. To mitigate them, companies implement compliance, legislative monitoring, and adaptation of internal policies;
Technological and innovation risks
arise from technology obsolescence, cyber threats, or failures in R&D. They are reduced through planned investments, cybersecurity measures, and systematic innovation management;
Organizational and human capital risks
relate to dependence on key individuals and the team’s lack of readiness for scaling. These are addressed through succession planning, incentive programs, and cultural development;
Reputational and ESG risks
include product quality, as well as social and environmental responsibility. They are managed through ESG initiatives, quality control, and transparent communication.

Risk management is not just a list of threats – it is a system. First, a risk map is created with probabilities and impact assessments, along with threshold values. Second, key risks are quantified in the financial model: scenarios (base/stress) are set, sensitivity analyses for prices, volumes, rates, etc. are performed, and the strength in terms of liquidity and covenants is tested. Third, targeted measures are implemented: supplier and customer diversification, hedging, inventory management, and more.

Risks in the Investment Context

Element	What matters to the investor?	Questions the company must address
Market and competition	Understanding demand dynamics, competitor actions, adaptation scenarios	What threats from the market and competitors does the company consider most significant? How are they reflected in the strategy?
Operational	Resistance of the Operational model to disruptions and dependencies	Is there dependence on key suppliers/customers? Is there an effective quality control system and mechanisms for quickly eliminating production/service issues?
Financial	Liquidity and ability to service debt under stress scenarios	What stress tests have been conducted in the financial model? What is the company’s debt policy?
Legal and regulatory	Compliance with regulatory requirements and standards	What key regulatory risks have been identified? How is compliance ensured?
Technology and innovation	Security and relevance of technologies, readiness for updates	How does the company manage IT and R&D risks? Is there a plan for upgrading key technologies and infrastructure? How dependent is the company from outdated technologies?
Organizational and HR	Strong management team, minimizing dependence on specific individuals	Who are the key holders of competencies? What motivation and retention programs are applied for key employees? Is there a risk of losing critical staff, including the founder?
Reputational and ESG	Protecting image, addressing environmental and social agenda	How does the company manage ESG and reputational risks? How does it work with customers and partners in terms of transparency and reputation? What social and environmental standards have been introduced?

HOW TO TURN STRATEGY INTO RESULTS?

A brilliant idea is not enough. Without a clear strategy, even the most promising company remains a set of disconnected initiatives, unable to ensure active growth and achieve strategic goals. Strategy is not an option, but a necessary precondition for business development.

From Ideas to Action

A full strategic cycle consists of three elements: formulation, formalization, and consistent execution. Only in this way does a company’s strategic vision turn into concrete results, giving investors confidence that the invested capital will drive business growth and increase shareholder value.

To grow, a company needs not just a strategy, but a cycle: formulate, formalize, and implement:

Formulation of strategy is not for the sake of the process
It sets a common direction, aligns the work of departments, and turns intentions into a system that answers key questions: where is the company going to compete, and how is it going to win this competitive battle? But if the strategy exists only in the founder’s mind, it remains a personal vision, not a management tool.
Formalization of strategy turns ambitions into measurable goals
Developing and fixing objectives disciplines thinking, helps identify weaknesses and eliminate contradictions. It also plays a key role in communication, creating shared understanding of tasks and benchmarks – from the Board of Directors and top management to line employees;
Execution of strategy is where the real value lies
A strategy without execution is just a loud statement without action. Consistent execution is a critical factor: translating long-term goals into operational tasks, assigning responsibility, and embedding a control system. At the same time, combining flexibility with focus becomes the main driver of success – enabling the company to adapt to market changes without losing its strategic course.

For investors, it is important to see not only an effective and well-founded strategy but also the readiness for its implementation. Strategy is part of management, and a necessary condition for its successful execution is its integration with company’s management system.

It is also essential for the investors to see financial calculations confirming the required returns, as this directly reflects the interests of both investors and founders.

ink Advisory provides comprehensive support for equity financing transactions for business owners and company executives. We speak the language of business and understand what matters to business owners. Our goal is to make the process clear, comfortable, and as effective as possible.

Our value for your business:

Strategy analysis – we evaluate the company’s strategy and roadmap: identify strengths and weaknesses, and propose practical adjustments.
Financial model expertise – we analyze the input data and the logic of the financial model, which forms the basis for correctly determining the company’s value.
Investment advisory – we advise on current investment value and show how it will change with the implementation of the strategy and long-term goals.
Strategy development – if there is no finalized strategy yet, but there are strategic intentions, we help turn them into a coherent strategy, prepare a document that meets capital market requirements, and develop a financial model in a way that makes the business clear and attractive to investors.