Investment Readiness Programme
The Investment Readiness Programme is designed to get your business Investment Ready.
It is often the case that many good businesses are simply unfundable, at least in the shape that they come to us, for a number of reasons – poor strategy, operational problems, lack of management strength, inadequate business plans, poor presentation of business to investors, etc., etc. Our job is to help them overcome the barriers they face and also to look at other avenues forward.
We work with you…
Once appointed, we will quickly review the business and its proposition, if we believe that the business proposition is viable, we will discuss the potential ways forward with the senior team or owners and agree what needs to be done before the business proposition can be presented to investors. We also look for alternative ways ahead – because a funding solution is not always the best way forward and because the availability of funding cannot be guaranteed.
This process involves looking at the company’s weaknesses and general operations – this may throw-up other actions to be taken to improve the business, profitability, cash flow, etc. Sometimes funding is not actually required after corrective changes are made!
We maintain a close and extensive network of Corporate Finance partners. From private individuals investing on their own to informal investment groups of a number of private investors private equity houses and venture capital contacts.
The right investment partner…
It is our role to ensure that we match you and your business up, with the right investors. Once appointed, we will introduce you and your business to a number of sources of both debt and equity, to enable the management team to select the most appropriate funding partners
Once a preferred equity investor is on board, we will help negotiate a fair deal with the investor, in terms of both the equity share that they take and their ongoing monitoring and management information requirements
Do your homework
Not all business private Equity Firms are the same. Try and find out as much about the Private Equity Firm you want to approach. Ask yourself what kind of businesses they have invested in before? Do they have a particular market sector they like? What kind of Private Equity Firm are they? Will they want to take an executive role in your business or a non-executive role?
Prepare your business plan
No Private Equity Firm is going to make an investment without first seeing a detailed business plan. Your business plan should include details of not only the investment you are looking for but also information about how your business is performing now and is projected to perform in the future.
Develop your management team
All Private Equity Firms are looking for a well-run business they can invest in. They don’t want to spend hours teaching the management team the basics of how to operate their business. It is important to look at your management team objectively. Are there any weak points that you should strengthen before approaching a private Equity Firm?
What are you prepared to give up?
A business investment by a Private Equity Firm will not come without any strings attached. You should be crystal clear about what the Private Equity Firm will take from your company either in cash or other items such as intellectual property before you agree to take the working capital from them.
How much money do you need?
Private Equity Firms usually have a minimum and maximum they will invest in a business. The costs of completing a deal usually limit any investment to a minimum of £500k. However, amounts between £10,000 and £500k can be raised from private investors operating on their own.
Deal or no deal?
Before your business enters into a contract with a Private Equity Firm it is vitally important that you understand every aspect of the agreement you are about to sign and we recommend you take expert legal advice, normally the Private Equity Firm will insist upon this anyway.