Fundraising in UAE: Get Your Business Funding-Ready

A company may be well-positioned to sell a product and develop a strategy of growth; however, discussions of financing may become problematic if it lacks necessary financial information.

Investors and financiers may question the relationship between current performance and future forecasts, timing of cash requirement and use of funds raised.

It may require preparation assistance if:

• You have a number that you need to raise but you cannot justify it.
• Your sales forecast does not correlate with costs, cash balance and cash flow.
• The accounting information from different periods is inconsistent.
• You have a business plan or a pitch presentation where financials require evaluation.
• Key financial statements are stored in different folders.
• You don’t understand how to explain the difference between actual past numbers and future assumptions.

You do not have to have a ready investment package to discuss financing issues with us at least initially.

Our services will begin by understanding your funding requirement and existing financial information from your company. After that, we will come to an agreement on how you should prepare for your suggested discussion. Our assistance will be in the following areas, among others, depending on the engagement.

Funding Requirement and Use of Funds

The uses of the funding requested will be considered based on how the company plans to utilize the funding, whether to increase capacity, hire personnel, develop a product, or support working capital. This is to determine the rationale for the request in relation to the specific business plans.

A use-of-funds schedule will be useful for management to communicate where the funds will be used and the rationale behind the requested amount.

Historical Financial Information

Past financial performance provides context for future plans. We review available statements and management reports to understand revenue, costs, margins, cash movement and significant changes between periods.

Where records are incomplete or figures require reconciliation, we identify those areas before they become difficult questions in a funding discussion. Businesses that need support in maintaining accurate financial records may also explore our Bookkeeping & Accounting Services as part of their broader accounting needs.

Financial Projections and Assumptions

A forecast is useful when someone can understand what drives it. We help management organise projections around assumptions such as expected sales, pricing, costs, hiring, operating expenses and planned investment.

We can also consider how changes in those assumptions may affect the forecast. This gives the business a more practical basis for discussing its plans than presenting a single growth figure without an explanation.

In Fundraising in UAE, assumptions that are made while making financial projections play an important role in assisting organizations to plan for future growth in an organized manner.

Cash Flow and Funding Timing

A business may show projected profit and still need cash before customer payments arrive. Cash-flow planning looks at the timing of expected receipts, payments, operating needs and planned spending.

This helps management see when funding may be required, how long it is expected to support the business, and which assumptions have the greatest effect on that estimate.

Financial Information for Investor or Lender to Review

We assist in arranging the financial information which is agreed upon in a cohesive document. The information may consist of past results, future projections, schedules that support the figures, financing calculations and assumptions involved.

The information that will be needed depends on the person or institution reviewing the business. Businesses that are looking to finance their business in the UAE should be aware of what is needed. We identify the likely financial questions for the proposed discussion and prepare the agreed materials around them.

Readiness for Financial Questions

Preparing documents is only part of the work. Management also needs to understand the numbers it presents. We walk through the financial information with your team so they can explain the funding need, key assumptions and areas of uncertainty in their own words.

We agree on the scope and deliverables after reviewing your business's position. The table below shows the types of output that may be relevant; it is not a fixed package for every company.

Your engagement proposal should state which deliverables are included, what information your team will provide, and which matters may require separate specialist support.

1. 1
   Understand the Purpose of the Funding

   We first consider what you are trying to achieve with the funding, the current amount under consideration, when it should happen and who you are going to talk to about it. It will help us understand what decisions you need to make.

2. 2
   Review the Information That Exists

   This will be the review of the information you already have about the agreed scope of the process. This may include financial statements, management accounting, budget, sales, cash flow or any forecast.

3. 3
   Point out What is Missing and What Needs to Be Done

   Here we point out where more information is needed, where there is a need for reconciliation and preparation. It gives you an exact scope of work, not just a long list of papers without priorities.

4. 4
   Prepare and Review the Agreed Outputs

   This will be the preparation of the agreed financial information based on the information and assumptions that have been made in discussions with management.

5. 5
   Walk Through the Numbers

   We discuss the completed work with management, including the main assumptions and questions it may need to answer. The aim is for your team to understand the figures it uses in funding discussions.

Show what you've got. Some useful documents you can start with may include:

• Financial statements and management accounts recently prepared
• Sales and expenses reports
• Budgets and financial forecasts
• Cash flows
• Current borrowings and repayment schedules
• Business plan or investment pitch
• Summary of the funds required and how they will be used

Not all documentation is needed prior to any discussion. We'll identify your existing documents and determine which ones are relevant for our agreed preparation process.

Use this checklist to review the documents your business already has before the initial discussion. You do not need every item to start the conversation — this checklist helps identify what information is available and which areas may need further preparation.

Such a service can apply to a business in the UAE which has some financing target in mind and requires organisation of the finance data behind that target. This applies to a new startup which has some meetings with potential investors lined up or even a well-established company.

The preparation will differ from one business to another. A company with reliable monthly reporting may need focused forecasts and a funding schedule. Another may first need to resolve gaps in its financial records. We assess that starting point before defining the work.

Fundraising preparation focuses on the financial work needed for a particular funding objective or upcoming discussion. Ongoing CFO Advisory Services address wider management needs such as regular reporting, budgeting, performance review and financial planning.

A business may need one service or both at different stages. We can discuss the appropriate scope based on what you are trying to prepare and the support you already have.

A useful funding conversation starts with figures that management understands and can explain. We focus on the link between your existing financial records, your proposed plans and the amount of funding being considered.

We begin by reviewing your situation, then define the financial preparation work that is relevant to it. You will know which documents are included in the agreed scope and which information is still needed from your team. Our role is to support your preparation; the decision to provide funding remains with the investor or lender.

If your business is considering investment or financing, start by getting clear on the numbers behind the plan. Proper preparation for Fundraising in UAE helps management organise financial information and understand the figures that support their funding discussions.

Tell GetMyAccounting what you are working towards and what financial information you currently have. We can discuss the preparation needed for your next step.