Private Equity

Equity finance is capital invested into a business in return for a share of the ownership of that business. Equity finance provides businesses with capital to carry out their business plans, often when they are unable to raise finance from other lenders. Equity finance does not offer a guaranteed return to the investor and to compensate for the risk, investors will look for a large future return on their investment. We will advise you on how this affects your business.

Seeking private equity will involve giving up ownership of part of your business. Investors generally show a preference towards businesses with high growth potential. Before agreeing to any investment, we will ensure that you fully understand what it will mean for your business, especially in terms of financial and management control in addition to exit strategies.

We can also advise you as to the sources of equity finance including private investors, corporate investors, professional private equity firms and social development funds. Private equity investors may be referred to as ‘Business Angels’ (private investors acting individually or as part of a group) or ‘Venture capital companies’ (which usually make larger investments into businesses, typically investments from £1,000,000 upwards).

We will advise you as to the most suitable investor which may be dependent on three factors:

• the value of investment you are seeking
• the stage of your business development, e.g. start-up, expansion, MBO
• your industry sector

We are also able to carry out the due diligence process on your behalf, negotiate the terms of any investment agreements and will explain in simple terms the implications on your existing business.

Key Personnel:

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