Understanding the Mainshares pre-qualification process
Mainshares works with entrepreneurs to pre-qualify their access to equity capital through its affiliated broker-dealer, Main Street Securities LLC (”Main Street”). By being pre-qualified, entrepreneurs, investors, and brokers can be confident that the entrepreneur will likely be able to work with Main Street to raise any capital needed for a deal.
How does the amount being pre-qualified get determined?
The amount being pre-qualified gets determined based on the entrepreneur’s background, management experience, and net worth. For entrepreneurs without strong operating experience, they may find that their pre-qualification amount is less than others.
Who handles pre-qualification for equity financing?
Main Street, the affiliated broker-dealer of Mainshares, works directly with entrepreneurs to complete equity pre-qualification. Registered representatives will review the personal documents and financial statements of the entrepreneur to determine pre-qualification status. This status often comes along with a letter of support to provide to relevant counterparties.
How long does it take to get pre-qualified for equity financing?
Our partners can typically get an entrepreneur pre-qualified within two business days. The timeline may be constrained by the availability of both parties to schedule a virtual meet-and-greet.
Does the pre-qualification come with a commitment to use Main Street?
No. There is no commitment.
Why should I get pre-qualified?
Many owners and brokers are not very familiar with the capital raises and may be suspicious of an individual buyer’s ability to finance a transaction, especially if their net worth or liquid assets are below the purchase price of the business.
By getting pre-qualified, entrepreneurs can show that they have low execution risk with the transaction.